Technology company Cisco System announced that it would cut five percent of its global workforce, or more than 4,000 jobs.
As the company lowers its revenue target, it tries to sail through a tough economy which has been hit by layoffs starting early 2024.
Clients in the telecom industry have put restrictions on their expenditure and so analysts expect that the demand for Cisco products will remain under pressure.
Read More: Layoffs: Cash-strapped airline SpiceJet to layoff about 1,400 employees
At present, Cisco’s focus is on artificial intelligence and it is exploring partnership with software company Nvidia to boost growth. Charles Robbins, chief executive officer, Cisco mentioned that Nvidia had agreed to use Cisco’s ethernet with its own technology.
This is widely used in data centres and AI applications. Cisco, which has 85,000 employees, in early February, was planning on layoffs and restructuring to focus on high-growth areas.
Read More: Layoffs 2024: Snap to lay off 10 percent of its global workforce