(KRON) — San Jose-based tech giant Cisco plans to lay off over 4,000 employees, according to a report in the Silicon Valley Business Journal and later corroborated by the San Francisco Chronicle.

In a transcript of Cisco’s Q1 2023 Earnings Call published by Motley Fool, Cisco Chief Financial Officer Scott Herren characterized the move as a “rebalancing.” Chairman and Chief Executive Officer Chuck Robbins said the company was “rightsizing certain businesses.”

The layoffs, which will see approximately 4,100 jobs cut, represent a downsizing of about 5% of the company’s workforce, which is estimated to be around 83,000 people. In its first quarter earning report from Wednesday, Cisco claimed $13.6 billion in revenue, which was up 6% year over year.

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“We delivered strong results in Q1 and continued to make progress on our business transformation,” said Scott Herren, CFO of Cisco. “Our annualized recurring revenue increased to more than $23 billion, with product ARR growing 12%. This, together with our significant backlog, strong RPO, and easing supply situation, provides us with great visibility and predictability, and supports our increased full year guidance.”

The layoffs from Cisco are just the latest in a spate of job cuts across the tech sector that have hit companies like Twitter, Meta Inc., and most recently, Roku.