Amid the push for AI, sources say Cisco will cut thousands of jobs in its second layoff this year.

Sources claim that Cisco, a US manufacturer of networking equipment, will lay off thousands of workers in its second job cut of the year amid the push for AI.

According to people familiar with the situation, Cisco plans to let off thousands of workers in a second round of layoffs this year as the American manufacturer of networking equipment focuses on higher-growth sectors like cybersecurity and artificial intelligence.

According to the sources, who were not permitted to talk publicly, the number of affected employees may be comparable to or somewhat more than the 4,000 workers that Cisco let go in February. The announcement will probably be made as early as Wednesday along with the company's fourth-quarter results.

Prior to the company's announcement in February, San Jose, California-based Cisco made a job cut, which Reuters exclusively disclosed.

According to their annual report, as of July 2023, the corporation employs about 84,900 workers. The amount does not include the layoffs that occurred in February.

An inquiry for comment from Cisco was not immediately answered.

Soon after Reuters broke the news of the layoffs, its shares dropped by almost 1%. Up more than 9% so far this year, the stock closed on Thursday.

In its core business, Cisco, the biggest manufacturer of routers and switches that control internet traffic, has been struggling with weak demand and supply-chain issues.

Due to this, the business has been forced to diversify through actions like its $28 billion acquisition of cybersecurity startup Splunk, which it carried out in March. The acquisition will increase its subscription business and lessen its reliance on one-time equipment sales.