Increased competition and a slow global economy have reportedly forced Cisco Systems to lay off 4,000 workers.

The San Jose Mercury News says that an undisclosed number of the workers will be rehired in capacities relating to "cybersecurity, data centers, video and Internet or so-called cloud-based products,"

Cisco sells networking products, security devices, videoconferencing equipment, and more.

The executives said the global economic climate was "challenging." The company's competitors in the market include Huawei Technologies Co., Juniper Networks, Inc. (JNPR), and Hewlett-Packard Co. (HPQ).

In a conference call, chief executive officer John Chambers said that he was "real pleased" with the company's momentum in the market but that "it is just not growing as fast as we need."

The New York Times said analysts were expecting the company to post $12.41 billion while the company actually made $12.42 billion, a 6 percent increase. "Sales in the United States were strong, but international sales were a concern," the New York Times said.

Cisco received the Ron Brown Award in 2002, a presidential honor given to companies "for the exemplary quality of their relationships with employees and communities."

According to Bloomberg,com, Cisco has spent $10.6 billion purchasing companies, going into software, and security. In an article, Bloomberg's website elaborated upon what happened, saying, "[A] reason for weaker profit growth and margins is Cisco's entry into the computer-server business, where prices and margins are lower. It's also expanding into computer security, where Cisco faces specialized competitors with advanced technologies."

Cisco fell 7.2 percent to $24.49 at the close in New York, the biggest decline since May 2012.