Networking giant Cisco Systems is reportedly preparing for another significant round of job cuts, according to sources familiar with the matter. This move comes as the company aims to realign its focus towards high-growth areas such as cybersecurity and artificial intelligence (AI).
The upcoming layoffs are expected to be similar in scale to, or potentially exceed, the 4,000 positions eliminated in February 2023. An announcement could come as early as Wednesday, coinciding with Cisco’s fourth-quarter results presentation.
As of July 2023, Cisco employed approximately 84,900 people, a figure that does not reflect the earlier layoffs this year. The company has not yet responded to requests for comment on the matter.
This strategic shift has impacted Cisco’s stock performance, with shares declining nearly 1% following the initial report of the impending cuts. Overall, the company’s stock has seen a drop of over 9% year-to-date as of the most recent market close.
These workforce reductions highlight the ongoing challenges in the tech industry. Companies still need to adapt to a changing market demands and emerging technologies.
