One of the major players in networking equipment, Cisco Systems has announced its plans to reduce its global workforce by 5% which will affect over 4,000 jobs across globe. As quoted by Reuters, the decision has come as the company faces challenges in a difficult economic environment, marked by numerous layoffs within the tech sector this year.Soon after the announcement, Ciscos stock fell more than 5% on February 14 during extended trading. The business decreased its initial estimate of $53.8 billion to $55 billion in its year revenue prediction to a range of $51.5 billion to $52.5 billion.It is to be worth noted that Cisco in the previous year concluded with almost 85,000 employees, as per official information.Cisco is not the only one, thousands of jobs have already been implementing the workforce reductions across US. The tech industry which has witness large number of payoffs in 2023, has already seen 34,000 job cuts across 141 firms in the 2024.Strategic Shift towards AI and Partnership with NvidiaMeanwhile, Cisco is strategically focusing on artificial intelligence and partnership with Nvidia to boost growth. CEO Robbins announced a partnership with Nvidia, wherein the latter agreed to incorporate Ciscos ethernet with its widely used technology in data centers and AI applications.
