In light of the recent decline in revenue, Cisco Systems is compelled to make global workforce adjustments. As the company recently announced, the workforce will be cut by a significant five percent. With just under 85,000 employees at the end of the last fiscal year in July, this means a substantial reduction in jobs. This will result in costs of approximately 500 million US dollars for the current quarter, comprising severance and associated actions. For future phases, additional costs of about 300 million US dollars are anticipated. For the current fiscal quarter, Cisco forecasts revenue between 12.1 and 12.3 billion US dollars, which falls below market expectations of an average of 13.1 billion US dollars. Even the targets for earnings fell short of analyst estimates. Meanwhile, Nvidia is benefiting from strong investments in the field of Artificial Intelligence, particularly in specialized chips, while investments in network technology may potentially be scaled back. In the second fiscal quarter, which ended in January, Cisco reported a six percent year-over-year revenue decline to 12.8 billion US dollars. Profit also fell by five percent to 2.6 billion US dollars. These developments were reflected in after-hours trading, where Cisco's stock suffered a decline of over five percent.