Networking hardware and software giant Cisco will reportedly lay off thousands of workers as the company steers from its core business and focuses on other IT industries like cyber security and artificial intelligence.
This will be a second wave of job cuts for Cisco in 2024. The company previously laid off 4,000 workers in February. A similar or slightly higher count is expected this time around.
More details are expected when an official announcement arrives next week when Cisco is scheduled to share its fourth-quarter earnings report.
Cisco has been struggling with sluggish demand in its core business, prompting the company to diversify to fast-growing areas. One of the moves included acquiring cybersecurity company Splunk, for which Cisco paid $28 billion earlier this year.
The company has also been jumping on the AI train and has made a number of investments in the AI sector in recent years. It is also trying to incorporate AI technology into its own services. At the same time, Cisco has been slashing its costs in other departments to account for those investments.
Cisco’s stock saw a slight movement on Friday following reports about job cuts, closing at $45.47 per share. The company’s shares are currently 10% down year-to-date.