(TheConservativeTimes.org) – Cisco Systems is planning to lay off seven percent of its employees in a second round of job cuts this year as they focus on moving toward artificial intelligence and cybersecurity.
The company is in San Jose, California and didn’t specify how many jobs they are laying off. They have about eighty-four thousand jobs and have already laid off almost six thousand people; in their job cuts in February they laid off four thousand jobs.
The company said that they would invest one billion dollars in startups Cohere, Scale, and Mistral to develop artificial intelligence products. It also announced a partnership with Nvidia to develop infrastructure for artificial intelligence systems.
Cisco layoffs come after Intel Corp announced that it would cut fifteen thousand jobs as it tries to compete with more successful rivals like Nvidia and AMD. Intel has had disappointing investors and its stock took a fall as well.
Cisco has launched a cybersecurity readiness index to help businesses measure their resilience against certain attacks. Cisco Systems Inc. earned over two billion dollars in its fourth quarter, which is down forty-five percent.
Revenue fell about ten percent, which is about two million less than the year before. Experts have said that Cisco is starting to see demand recover a bit after it’s slowed over the last few quarters.
David Hager, Edward Jones analyst, said, “…the restructuring will help offset the earnings impact from interest expenses associated with financing the Splunk acquisition and will rationalize combined workforces.”
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