Cisco Systems plans to lay off 7% of its workforce, marking its second round of job cuts this year, as it shifts focus to faster-growing tech areas like artificial intelligence and cybersecurity.

The San Jose-based company did not specify the exact number of jobs being cut, but with 84,900 employees as of July 2023, the layoffs would affect about 5,900 positions. In February, Cisco had announced approximately 4,000 job cuts.

In June, Cisco committed to investing $1 billion in tech startups, including Cohere, Mistral, and Scale, to develop reliable AI products. The company also recently partnered with Nvidia to create AI system infrastructure.

These layoffs follow Intel Corp.’s announcement of cutting around 15,000 jobs as it tries to compete with more successful rivals like Nvidia and AMD. Despite Intel’s disappointing quarterly earnings and subsequent stock decline, Cisco’s shares rose about 6% after-hours on Wednesday.

In cybersecurity, Cisco introduced a cybersecurity readiness index in March to help businesses assess their resilience to attacks.

For its fiscal fourth quarter ending July 27, Cisco reported earnings of $2.16 billion, or 54 cents per share, a 45% decline from $3.96 billion, or 97 cents per share, the previous year. Adjusted earnings were 87 cents per share, with revenue falling 10% to $13.64 billion from $15.2 billion. Analysts had expected adjusted earnings of 85 cents per share on revenue of $13.54 billion, according to FactSet.