Cisco revenue decreased 3% to $47.1 billion (£28.2 billion, AU$50.6 billion) during fiscal 2014 compared with fiscal 2013, the company said. Net income also decreased this year, from $9.98 billion (£5.98 billion, AU$10.73 billion) to $7.85 billion (£4.70 billion, AU$8.44 billion).
The San Jose, Calif.-based company will cut 6000 jobs in the coming months, as it attempts to reorganize its engineering team. Cisco employs approximately 70,000 globally.
"This will be a reallocation of resources," said Cisco CEO John Chambers on an earnings call. "We will invest these resources in our growth areas, such as cloud and security."
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2014 was the year of connected devices for Cisco. The company recently began an aggressive campaign to lead the Internet of Things market. In March, Cisco said it would invest $1 billion (about £605 million, or au$1.1 billion) to build what it said would be the world's largest Intercloud network to tackle the Internet of Everything.
Cisco has publicly stated it believes the The Internet of Everything (IoE) could generate $4.6 trillion (£2.7 trillion, AU$5.1 trillion) in value for public sector organizations over the next decade.
During the fourth quarter of fiscal 2014, Cisco partnered with Hamburg, Kansas City, and Barcelona to create Internet of Things infrastructures. Cisco also signed an agreement with Denmark to develop an Internet of Things infrastructure in three cities, including Copenhagen.