Cisco Prepares for Another Major Layoff

Cisco Systems (NYSE:CSCO) is reportedly gearing up for another significant round of layoffs, marking its second major workforce reduction this year. According to sources cited by Reuters, the networking equipment giant is preparing to cut thousands of jobs, potentially mirroring or even exceeding the 4,000 positions eliminated in February.

The new wave of layoffs is expected to be announced in conjunction with Cisco's upcoming fourth-quarter earnings report, which is anticipated on August 14. This move aligns with the company’s broader strategy to realign its business focus towards high-growth sectors like cybersecurity and artificial intelligence, amid persistent challenges in its traditional hardware operations.

Cisco has faced declining demand and supply chain issues in its core business segments, particularly in routers and switches. In response, the company has been working to diversify its offerings. A key part of this strategy was the $28 billion acquisition of cybersecurity firm Splunk earlier this year, a move intended to strengthen Cisco’s subscription-based revenue and reduce its dependency on one-time hardware sales.