.August 9, 2024 04:48:00 PM

Cisco Systems (NYSE:CSCO) is reportedly planning another round of layoffs, potentially cutting thousands of jobs in its second major workforce reduction this year. This move comes as the company aims to focus on high-growth sectors like cybersecurity and artificial intelligence, following challenges in its traditional hardware operations. The layoffs are expected to be announced alongside Cisco’s fourth-quarter earnings report on August 14, aligning with its strategy to diversify offerings and reduce dependency on one-time hardware sales.

Facing declining demand and supply chain issues in routers and switches, Cisco has been working to realign its business. The company’s acquisition of cybersecurity firm Splunk for $28 billion earlier this year is a key part of its strategy to strengthen subscription-based revenue and expand beyond hardware sales. This acquisition is intended to help Cisco navigate challenges in its core business segments and drive growth in new sectors.