SAN JOSE, Calif. (AP) — Cisco Programs is planning to put off 7% of its workers, its second spherical of job cuts this yr, as the corporate shifts its focus to extra quickly rising areas in expertise, equivalent to synthetic intelligence and cybersecurity.
The corporate based mostly in San Jose, California, didn’t specify the variety of jobs it’s reducing. It had 84,900 workers as of July 2023. Based mostly on that determine, the variety of jobs lower can be about 5,900. In February, Cisco introduced it will lower about 4,000 jobs.
The networking gear maker stated in June that it will make investments $1 billion in tech startups like Cohere, Mistral and Scale to develop dependable AI merchandise. It lately additionally introduced a partnership with Nvidia to develop infrastructure for AI methods.
Cisco’s layoffs come simply two weeks after chipmaker Intel Corp. introduced it will lower about 15,000 jobs because it tries to show its enterprise round to compete with extra profitable rivals like Nvidia and AMD. Intel’s quarterly earnings report disillusioned buyers and its inventory took a nosedive following the announcement. In distinction, Cisco’s shares have been up about 6% after-hours on Wednesday.
In a foray into cybersecurity, Cisco launched a cybersecurity readiness index again in March to assist companies measure their resiliency towards assaults.
Cisco Programs Inc. stated Wednesday it earned $2.16 billion, or 54 cents per share, in its fiscal fourth quarter that ended on July 27, down 45% from $3.96 billion, or 97 cents per share, in the identical interval a yr in the past. Excluding particular gadgets, its adjusted earnings have been 87 cents per share within the newest quarter.
Income fell 10% to $13.64 billion from $15.2 billion.
Analysts, on common, have been anticipating adjusted earnings of 85 cents per share on income of $13.54 billion, in line with a ballot by FactSet.
