Cisco Systems Inc, the world's largest maker of computer networking gear, said that it's set to eliminate thousands of jobs as part of cost-cutting moves to get profits growing again.

Cisco's sales rebounded from the recession, but then started stalling in the middle of last year. In the past few months, CEO John Chambers has signaled that he's accepting long-standing criticism that the company is trying to compete in too many markets. He has vowed to radically simplify the company.

hambers now wants to cut annual expenses by $1 billion, or about 6 percent. He didn't say how many jobs he's aiming to eliminate, mainly through an early retirement program. If the percentage is similar to the cut in expenses, it could amount to 4,000 to 5,000 of the company's 73,400 employees.