Next week Cisco Systems Inc. will announce staff cuts as part of a restructuring aimed at refocusing efforts to achieve more promising results. This was learned by the Reuters agency from a number of knowledgeable sources. The restructuring and accompanying cuts will be announced either during the quarterly report on February 14 or a day or two before.

According to the data on the company’s website, the total number of personnel is 84,900 people as of the 2023 fiscal year. The company had previously laid off 4,100 employees, or approximately 5% of its workforce, as part of the restructuring announced in November 2022.

Last November, the company reported that instead of growth, there would be a 6.6% decline in revenue and a small decline in adjusted earnings per share in the first fiscal quarter ending Jan. 28, 2024, contrary to analysts’ expectations. The company attributed the weak forecast to a slowdown in product order growth in previous months, particularly from cloud providers and other large customers reducing purchases. It is reported that they have not yet introduced the products purchased in 2023.

In the last quarterly report, CEO Chuck Robbins (Chuck Robbins) told investors that the company is working on this issue. “Expanding opportunities in fast-growing areas”. He said that as one of the steps in this direction, the acquisition of Splunk for 28 billion dollars will create a strong leap forward in the field of artificial intelligence-based software and data analysis.

Robbins described the AI ​​infrastructure market, specifically Ethernet networking equipment, as another growth area. Stating that the volume of orders from Cisco customers for this type of infrastructure may exceed 1 billion dollars by November 2023, Robbins said that the company is working on reference solutions that will combine network equipment with accelerators and SGDs developed by partners. The other day, Cisco and NVIDIA announced the expansion of their collaboration.

In addition, II. For the quarter, the company projects revenue of $12.6 to $12.8 billion and adjusted earnings per share of $0.82 to $0.84. Overall, in fiscal 2024, Cisco forecasts sales of $53.8 to $55 billion (a decrease). from the previously expected $57-58.2 billion).