Cisco Systems is cutting 7% of its global workforce to focus on high-growth areas, recognising up to $1 billion in pre-tax charges.

This follows a 5% cut earlier this year. Despite layoffs, Cisco’s shares rose 5% in extended trading after forecasting better-than-expected first-quarter revenue of $13.65 to $13.85 billion.

The company, facing sluggish demand and supply-chain issues, is diversifying through a $28 billion acquisition of cybersecurity firm Splunk to boost its subscription business. CFO Scott Herren emphasised a focus on growth in AI, cloud, and cybersecurity while maintaining capital returns.

Read More: https://www.cnn.com/2024/08/14/investing/ciscoto-cut-7-of-its-global-workforce