Internet networking company Cisco Systems said it will lay off more than 4,000 employees, or about 5% of its workforce. The move follows layoffs of 5,000 employees in 2022.
The company reported earnings of $2.6 billion for its fiscal second quarter, marking a 5% decrease from the prior year, and revenue of $12.8 billion, which was down 6% from the prior year.
Demand is expected to slow over the next three to six months, and customers will likely show “a greater degree of caution” due to economic concerns, said CEO Chuck Robbins. However, Cisco’s ties with Nvidia will give it an advantage in the AI space, he said. “We are clear beneficiaries of AI adoption.”
The company also noted its $28 billion acquisition of software firm Splunk is expected to close by April 30.
