Networking giant Cisco is planning to reduce its workforce by around 7%, marking its second round of layoffs this year as the company navigates industry changes. Cisco had around 84,900 employees as of last July, meaning the cuts will impact approximately 6,000 roles.
The company revealed the job cuts as part of its recent earnings report. While revenue dropped 10% and profits fell 45%, Cisco still exceeded analyst expectations. Its shares rose nearly 6% after hours on the results.
Cisco is striving to adapt to rising demand for artificial intelligence and cloud computing services. However, it faces competition from tech powerhouses focused on providing these solutions directly to large enterprises. Cisco remains highly profitable but seeks to optimize resources in high growth areas.
In March, Cisco completed acquiring cybersecurity leader Splunk for $28 billion. CEO Chuck Robbins outlined plans to fully integrate Splunk's capabilities and combine key divisions under a single leader. The restructure aims to position Cisco for continued success amid digital transformations across industries.
