Cisco Announces Over 4,000 Job Cuts Amid AI Focus Shift

The tech giant revises its annual revenue forecast downward as it realigns towards artificial intelligence and software development.

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.