Cisco beats earnings but plans to cut 5,500 jobs

Cisco Chuck Robbins4Cisco Live/Business InsiderCisco CEO Chuck Robbins

Cisco announced its fourth quarter earnings after the bell Wednesday afternoon.

It’s a beat across the board, but the stock is down about 2% in after-hour trading after announcing plans to cut 5,500 jobs.

Here are the most important numbers:

EPS (non-GAAP): $0.63 per share vs. $0.60 per share expected

Revenue: $12.64 billion vs. $12.57 billion expected (up 2% year-over-year)

The 5,500 job cuts would present 7% of its total workforce. That’s a much lower number than the 20% layoff a number of reports suggested Tuesday afternoon.

Cisco typically makes big layoffs after the end of its fiscal year in July. From 2011 to 2014, it announced thousands of job cuts after its fourth quarter earnings, including the 6,000 workforce reduction in 2014. It didn’t have any layoffs in 2015, which was CEO Chuck Robbins’ first year in his position.

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