U.S. networking giant Cisco Systems is preparing to invest US$4 billion in Mexico, funding the modernization of its manufacturing operations in the country.

The investment is expected to create 270 direct jobs and 77 indirect jobs at Cisco’s Mexican facilities over the next two years. This job creation will also extend to suppliers, as 4,830 direct and 1,105 indirect jobs are expected to arise from the investment.

“These facilities are expected to supply products to more than 110 countries, and directly complement our manufacturing efforts in the U.S. and around the world,” the company’s Chief Executive Chuck Robbins wrote in a blog post. “Mexico is rapidly becoming one of Latin America’s economic success stories.”

The investment is likely a direct result of Cisco’s decision to cut its workforce by 7% globally, as the savings from these cuts were planned to be re-invested into emerging sectors, such as connected services and cloud computing.

Cisco currently has 1,000 employees in Mexico and has been operating here since 1993. Over the years, the company has been a great contributor to Mexico’s technology talent pool, particularly through its Cisco Networking Academies, which have provided thousands of Mexicans with valuable networking qualifications. “The Networking Academy program in Mexico is one of our largest worldwide, with more than 50,000 students enrolled in 300 academies around the country,” Chuck Robbins said in his blog.

In Mexico, the company produces routers, servers, switches, videoconferencing screens, and wireless access points among other products. Last year, Cisco launched a global services center in Mexico City, its fifth such center in the world.