(Reuters) -Networking equipment maker Cisco Systems said on Wednesday it would cut 5% of its global workforce to focus on high-growth areas such as artificial intelligence and software, adding to thousands of job cuts by tech firms since last year.
The company also said it expects annual revenue of $51.5 billion and $52.5 billion. It had previously forecast $53.8 billion to $55 billion for the year.
The layoffs follow the company’s struggles with waning demand for its traditional switches and routers as customers reduced excess inventory since the pandemic-fueled boom. Cisco had cut its full-year 2024 revenue and profit forecasts during its first-quarter earnings call.
The company expects to take the majority of the actions on the job cuts in the third quarter of fiscal 2024.
Last year, Cisco agreed to buy Splunk for about $28 billion to bolster its software business and has disclosed plans to achieve $1 billion in AI-related orders by FY25.
(Reporting by Akash Sriram and Samrhitha Arunasalam in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli)
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