Cisco CSCO-Q said on Wednesday it plans to cut nearly 4,000 jobs, or 5 per cent of its workforce, as part of a restructuring plan to invest more in growth areas such as artificial intelligence, sending its shares up 14 per cent in extended trading.
It said that it sees pre-tax charges of up to US$1-billion relating to the layoffs, with about US$450-million to be recognized in the fourth quarter and the rest in fiscal 2027.
Cisco had about 86,200 employees as of July 26 last year.
The networking equipment maker also raised its annual revenue forecast, helped by a surge in orders from hyperscalers for AI infrastructure.
The company now expects fiscal 2026 revenue in the range of US$62.8-billion to US$63-billion, compared with its earlier forecast of US$61.2-billion to US$61.7-billion.