FILE PHOTO: A sign bearing the logo for communications and security tech giant Cisco Systems Inc is seen outside one of its offices in San Jose, California, U.S. August 11, 2022. REUTERS/Paresh Dave/File Photo

Cisco announces 5% job cuts, raises annual revenue forecast

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May 13 : Cisco 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 $1 billion relating to the layoffs, with about $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 $62.8 billion to $63 billion, compared with its earlier forecast of $61.2 billion to $61.7 billion.

Source: Reuters

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