Cisco, a leading tech company that makes internet routers and switches, is planning to lay off thousands of workers for the second time this year. The company is dealing with low demand and issues with its supply chain, which has led it to focus on faster-growing areas like cybersecurity and artificial intelligence (AI).

Earlier this year, Cisco laid off about 4,000 employees, and this new round could impact even more people. The layoffs are expected to be announced soon, along with the company’s fourth-quarter financial results.

To adapt to the changing market, Cisco is investing heavily in AI. It recently bought a cybersecurity company called Splunk for $28 billion and created a $1 billion fund to invest in AI startups. Cisco hopes that these investments will help it move away from relying on one-time sales of equipment and build a stronger business based on subscriptions.

The layoffs at Cisco are part of a larger trend in the tech industry. Many tech companies are cutting jobs to balance their budgets after making big investments in AI. So far this year, over 126,000 people have lost their jobs across 393 tech companies.

Cisco’s stock has dropped more than 9% this year as the company navigates these challenges. Despite this, Cisco is determined to include more AI in its products and has set a goal of reaching $1 billion in AI product orders by 2025.

For more information Click Here.