In line with the broader tech industry trend, Cisco Systems is set to downsize its workforce by around 7% as part of a second wave of layoffs. The move comes as the company accelerates its efforts to capitalize on the growing emphasis on artificial intelligence within the tech sector.
Cisco Systems, a leading producer of computer networking equipment, announced on Wednesday that it will be reducing its workforce by 7% in its second significant layoff phase this year. While the exact number of job losses wasn’t specified, the company, which had 84,900 employees as of July 2023, is expected to cut approximately 6,000 positions. Earlier this year, Cisco had already reduced its staff by 4,000.
In its latest earnings report, Cisco revealed a net income of $2.16 billion for the quarter, marking a 45% decrease from the previous year, with revenue falling 10% to $13.64 billion. Despite these declines, the company’s results surpassed Wall Street predictions, leading to a nearly 6% increase in its stock during after-hours trading.
Cisco Joins AI Push as Tech Giants Embrace Industry Shift
Following the trend seen across major tech firms, Cisco is intensifying its focus on leveraging artificial intelligence. Once a dominant force in Silicon Valley and briefly the world’s most valuable public company during the dot-com era, Cisco has recently been eclipsed by competitors specializing in cloud computing services for large enterprises.
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