Cisco Systems is looking at job cuts for thousands more employees in a second round of layoffs this year as Cisco shifts to AI and cybersecurity as industries with quicker growth rates.

Following its sales increase being completely erased by a downturn in corporate IT spending, Cisco said in February that it would be cutting roughly 4,000 jobs. At the end of the company's fiscal year 2023, which ended in July of that year, there were about 85,000 employees.

In order to manage inconsistent demand, Cisco is sharing employees with other IT companies. Even if investments in AI have accelerated growth in certain sectors, conventional IT behemoths have not profited as much.

This month, Intel revealed its intentions to cut 15,000 positions in order to combat slow sales. Aside from eliminating jobs, Dell Technologies is restructuring its sales staff.

In New York, Cisco shares dropped as much as 1.3% to $US45.24. When Friday's session began, they were down 9.3 percent so far this year.

Reporters have stated that the corporation may reveal the most recent layoffs as early as Wednesday when it releases its fourth-quarter earnings.

Three months ago, there was optimism that IT clients had resumed spending after an optimistic Cisco prediction with Cisco AI and cybersecurity changes. However, more recent worries about the state of the economy and the notion that spending on AI will not pay off in the short term have plagued the larger IT sector.

The CEO of the company, Chuck Robbins, has been working to transform Cisco from a hardware-focused company to one that provides networking services and software in the future.