Cisco cut 7 percent of employees worldwide

By Alimat Aliyeva

Cisco, an American telecommunications equipment manufacturer, announced a 7 percent reduction in staff numbers to focus on fast-growing areas such as artificial intelligence and cybersecurity, Azernews reports.

Cisco is now working to reduce its dependence on its huge network equipment manufacturing business, which has experienced difficulties due to disruptions in the supply chain and slowing demand after the pandemic. In February, the company said it would cut 5 percent of its global workforce or more than 4,000 jobs.

According to Michael Ashley Shulman, chief investment officer at Running Point Capital, the layoffs will allow Cisco to maintain its focus on growth areas such as software, services, AI and cybersecurity, while balancing its financial obligations and reducing the percentage of hardware in its product range.

The company's shares rose 5 percent in extended trading after it forecast upbeat earnings for the current quarter. "We have completed stock digestion, and are now returning to a more normalized demand environment," CEO Chuck Robbins said during a phone call to analysts.

It is emphasized that according to LSEG data, the company expects revenue in the first quarter in the range of $ 13.65 billion to $ 13.85 billion, which is higher than the average analyst expectation of $ 13.71 billion.