(Reuters) -Networking gear maker Cisco Programs stated on Wednesday it could reduce 5% of its world workforce to deal with high-growth areas corresponding to synthetic intelligence and software program, including to 1000’s of job cuts by tech corporations since final yr.
The corporate additionally stated it expects annual income of $51.5 billion and $52.5 billion. It had beforehand forecast $53.8 billion to $55 billion for the yr.
The layoffs comply with the corporate’s struggles with waning demand for its conventional switches and routers as prospects lowered extra stock for the reason that pandemic-fueled growth. Cisco had reduce its full-year 2024 income and revenue forecasts throughout its first-quarter earnings name.
The corporate expects to take the vast majority of the actions on the job cuts within the third quarter of fiscal 2024.
Final yr, Cisco agreed to purchase Splunk for about $28 billion to bolster its software program enterprise and has disclosed plans to realize $1 billion in AI-related orders by FY25.
(Reporting by Akash Sriram and Samrhitha Arunasalam in Bengaluru; Modifying by Shilpi Majumdar and Shinjini Ganguli)
