Cisco Systems plans to lay off 4000 employees, about 5% of its workforce.
The network equipment company earlier reported net income of $US2.3 billion in the fourth quarter, up from $US1.9 billion a year earlier. Revenues were up 6% to $US12.4 billion.
Chief executive John Chambers said that "the economic recovery is slower and more inconsistent".
The company predicted that revenues in the current quarter would grow by 3% - 5%. Shares fell more than 9% in after-hours trading.
Cisco is the world's largest manufacturer of network technology equipment. The BBC reports the company is often seen as a bellwether for other technology companies.