Cisco to lay off thousands more in second job cut this year, sources say
Cisco will cut thousands of jobs in a second round of layoffs this year as the U.S. networking equipment maker shifts focus to higher-growth areas, including cybersecurity and AI, people familiar with the matter said.
The number of people affected could be similar to or slightly higher than the 4,000 employees Cisco laid off in February, and will likely be announced as early as Wednesday with the company's fourth-quarter results, said the sources, who were not authorized to speak publicly.
Reuters exclusively reported the job cut that San Jose, California-based Cisco announced in February, prior to the company announcing it.
The company employed around 84,900 people as of July 2023, according to its annual filing. That number does not account for the February layoffs.
Cisco did not immediately respond to a request for comment.
Its shares fell nearly 1% after Reuters first reported the cuts. The stock was down over 9% this year as of Thursday's close.
Cisco, the largest maker of the routers and switches that direct internet traffic, has been grappling with sluggish demand and supply-chain constraints in its mainstay business.
That has pushed the company to diversify with moves such as its $28-billion buyout of cybersecurity firm Splunk, which it completed in March. The acquisition will reduce its reliance on one-time equipment sales by boosting its subscription business.
The company has been trying to incorporate AI products in its offerings and in May reiterated its target of $1 billion worth of AI product
