Cisco's Chambers vows to cut $1B in expenses, ax jobs as it reports dreary 3Q results

Cisco CEO John Chambers Wednesday said more layoffs were in store for the struggling networking giant, and vowed to cull divisions that weren't leading or near the top of their segments, after the company announced yet another uninspiring quarter.

In an earnings call, Chambers said the company would look to trim $1 billion in expenses, to keep them more in line with expected revenue.

"We are moving quickly to fix what is broken," said Chambers. "We've had to make big changes before and each time we have made these changes, we've emerged even stronger. We are embarking on a course that will address our challenges while building on our foundational strengths."

Sales of switches, part of the company's core business, were down 9 percent for the quarter, but that decline was moderated by an increase of 7 percent in router sales.

Videoconferencing, meanwhile, saw its star continue to rise. It and corporate phone systems recorded an increase in sales of 39 percent for the quarter; wireless product sales were up 32 percent.

Cisco said third-quarter net income was $1.8 billion, or 33 cents a share, down 18 percent from $2.2 billion, or 37 cents a share, a year ago. Revenue was $10.9 billion, up 5 percent from $10.4 billion. The company narrowly beat Wall Street expectations.

Cisco's stock slipped in after hours trading after the company scaled back its Q4 revenue projections.

For more:
- see this MarketWatch article
- see this release

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