Cisco CEO cites cautious customers and inventory consumption issue for light forecast.

• Cisco CEO Chuck Robbins explained to CNBC's Jim Cramer the reasons behind the company's light quarterly and full-year forecast, which includes a decline in orders from its service provider customers.
• The number of orders from telecommunications and service providers decreased by 40% in the quarter, according to Robbins.

In a Wednesday post-earnings interview with CNBC's Jim Cramer, CEO Chuck Robbins cited several reasons for the light quarterly and full-year forecast, including weak demand from its service provider customers.

Robbins stated that customers were more cautious this quarter compared to the previous one, and inventory consumption is taking longer than anticipated. Additionally, he mentioned that there was continued weakness in demand from telecommunications and cable service provider clients, resulting in a 40% decline in orders for the quarter.

"By the end of 2024, we hope to resolve the inventory consumption issue and see good times ahead, as we believe that the other two issues will also be resolved soon," he said.

On Wednesday, Cisco announced it would be cutting 5% of its workforce, or approximately 4,000 jobs, in a move that mirrors layoffs happening at other tech companies. As a result, Cisco shares dipped as much as 9% in extended trading.

Since we're not sticking to our plan this year due to the issues we discussed, we've had to adjust our expenses, Robbins stated. Although it won't be easy, we'll manage to get through it.

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