Cisco stock drops 10% after it says it's laying off 4,000 employees

A whole lot of Cisco employees are about to get the axe, and it’s punishing the company’s stock.

The company announced during a conference call with investors today that starting next year it will lay off 4,000 employees — roughly five percent of its workforce. Cisco has already laid off 500 workers this year.

According to Cisco chief financial officer Frank Calderoni, the company was “managing the business to account for slow inconsistent recovery,” as Marketwatch reports.

The news comes a day after Cisco delivered its second quarter earning. The company reported earnings of  $2.23 billion and revenue of $12.42 billion, an increase of 6% year over year.

The news didn’t make investors all that happy. Cisco’s stock has dropped 10% percent in after hours trading.