Cisco to lay off more than 4,000 employees, lowers annual revenue forecast
Cisco Systems said it would cut 5% of its global workforce, or more than 4,000 jobs, and lowered its annual revenue target as the company navigates a tough economy that has led to thousands of layoffs by tech firms this year.
Shares of the networking equipment maker fell more than 5% in extended trading on Wednesday, after Cisco cut the forecast to $51.5 billion to $52.5 billion from $53.8 billion to $55 billion, it projected earlier.
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Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisit «We also continue to see weak demand with our telco and cable service provider customers,» CEO Charles Robbins said in a conference call.
Analysts expect demand for Cisco's products to remain under pressure, as clients in the telecom industry restrict spending, prioritizing clearing their excess inventory of networking gear.
The networking hardware inventory pile-up should resolve in the second half of 2024 or early 2025, Joe Brunetto, analyst at Third Bridge said.
Meanwhile, Cisco is focusing on artificial intelligence and partnership with Nvidia to boost growth. CEO Robbins said Nvidia agreed to use Cisco's ethernet with its own technology that is widely used in data centers and AI applications.
Cisco expects third-quarter revenue between $12.1 billion and
