U.S. networking giant Cisco System is preparing for another round of significant job cuts, according to media reports on Wednesday.

The California-based company is planning to lay off 7 percent of its employees, its second round of job cuts this year, as it shifts its focus to more rapidly growing areas in technology, such as artificial intelligence and cybersecurity, the Associated Press reported.

Earlier this year, Cisco cut 4,000 people, affecting approximately 5 percent of its employees.

The upcoming layoffs at Cisco are expected to be substantial, potentially matching or surpassing the 4,000 job cuts implemented in February. The company's workforce totaled approximately 85,000 employees at the end of its last fiscal year.

Cisco said Wednesday it earned 2.16 billion U.S. dollars, or 0.54 dollars per share, in its fiscal fourth quarter that ended on July 27, a 45 percent decline from the same period a year ago. Its revenue fell 10 percent to 13.64 billion dollars from 15.2 billion dollars year over year.

The company also announced that Jonathan Davidson, executive vice president and general manager of the Cisco Networking team, had stepped away from the position and will serve as an advisor to its Chairman and CEO Chuck Robbins.

Cisco is bringing the networking, security and collaboration teams together as one organization led by Jeetu Patel as he has taken on an expanded role as the company's EVP and Chief Product Officer, according to Robbins.

"Cisco's layoffs could be indicative of broader industry trends where companies are reevaluating their workforce and operations," said Seth Kilander, founder and CEO of Ki Security and Compliance Group.

"We must remain prepared for industry changes, ensuring our businesses and our clients can weather any storms that come our way," he added.

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