Cisco Systems Announces Second Round of Job Cuts Amid Strategic Shift

Cisco Systems plans to lay off 7% of its workforce in its second job cut this year as it shifts focus to AI and cybersecurity. The company, with 84,900 employees, had previously announced 4,000 job cuts in February. Cisco also reported a decline in earnings and revenue in its latest fiscal quarter.

Cisco Systems is set to lay off 7% of its workforce, marking the second round of job cuts for the company this year. The tech giant, based in San Jose, California, aims to shift its focus to burgeoning areas like artificial intelligence and cybersecurity.

The company, which had 84,900 employees as of July 2023, didn't specify the exact number of jobs being cut. However, it amounts to approximately 5,900 positions. Earlier in February, Cisco announced the elimination of about 4,000 jobs. To bolster its technology advancements, Cisco has committed $1 billion to invest in tech startups like Cohere, Mistral, and Scale for developing AI products. Additionally, it recently revealed a partnership with Nvidia to advance AI infrastructure. The layoffs come just two weeks after Intel Corp announced a massive cut of 15,000 jobs.

Cisco also reported a significant earnings drop for its fiscal fourth quarter, netting $2.16 billion or 54 cents per share—down 45% from the previous year. Its revenue fell 10% to $13.64 billion, while analysts had expected adjusted earnings of 85 cents per share on revenue of $13.54 billion.

(With inputs from agencies.)