According to a recent report from Reuters, thousands of Cisco employees are expected to be affected by a new round of layoffs, which could be announced as early as next week. The world's largest networking company reportedly plans to cut around 4,000 jobs in its continued push towards expanding its capabilities in artificial intelligence (AI).

This upcoming layoff round mirrors the company's previous job cuts earlier this year. In February, Cisco announced a reduction of approximately 4,250 employees, which accounted for about 5% of its workforce. The decision was motivated by a decline in product revenues due to decreased customer orders during Cisco's fiscal Q2 in 2024.

Sources familiar with the matter suggest that the new layoff round will also affect around 4,000 employees or slightly more, similar to the previous reduction. The announcement is anticipated to be made alongside Cisco's fourth-quarter 2024 financial earnings results, scheduled for August 14.

Cisco, headquartered in San Jose, California, declined to provide any comments regarding the upcoming layoffs. As of July 2023, the company employed approximately 85,000 individuals. Following the February layoff, the number of employees reduced to just over 80,000 worldwide.

These recent layoffs align with Cisco's ambition to focus on AI technologies within its portfolio. The company aims to drive orders worth $1 billion in AI products by 2025. To reach this goal, Cisco has not only implemented various AI products but has also launched a $1-billion fund to invest in AI startups such as Cohere, Mistral AI, and Scale AI.

Cisco's decision to streamline its workforce and allocate resources towards AI initiatives reflects the ongoing trend in the technology industry. Dell Technologies, a prominent player in the sector, recently announced similar workforce reduction efforts aimed at becoming a "learner company" in the era of AI.

As the global landscape continues to evolve, technology companies like Cisco are adapting to new market dynamics and aligning their strategies to meet the growing demand for AI-powered solutions.