Overview

• Cisco Systems announces a 5% global workforce reduction, amounting to over 4,000 jobs, amid a strategic shift towards artificial intelligence and software development.
• The company lowers its annual revenue forecast to $51.5 billion to $52.5 billion, down from the previously projected $53.8 billion to $55 billion.
• Cisco's shares fell more than 5% in extended trading following the announcement of job cuts and revised revenue forecasts.
• The layoffs and restructuring are part of Cisco's efforts to focus on high-growth areas such as AI, with partnerships including a significant collaboration with Nvidia.
• Cisco's Q2 fiscal year 2024 results show a revenue decline of 6% year over year, with net income also decreasing.