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Cisco has announced another major round of layoffs, after cutting four thousand workers in February. The current layoffs will affect seven percent of Cisco’s workforce, and the cuts are due to higher supply costs with increasing investment in AI being a major factor. The company is also facing lower demand, and will shift its focus to the divisions with the highest growth potential. Cisco has historically focused on products related to networking equipment, but it recently acquired Splunk, a data management platform that offers subscription-based services. Cisco has also invested or acquired twenty various AI startups in the past few years, and has also increased its involvement in the cybersecurity market.