Cisco is cutting nearly 4,000 jobs, even as its shares jumped sharply after the company posted better-than-expected results.
The networking giant said the latest layoffs will affect less than 5 percent of its workforce. The job cuts are set to begin on May 14.
Interestingly, the announcement came at a time when Cisco’s stock surged around 15 percent in extended trading on Wednesday.
Investors cheered the company’s strong quarterly performance and upbeat guidance.
CEO Chuck Robbins said Cisco is sharpening its focus on key growth areas, especially artificial intelligence, security, silicon and optics.
The message is clear: Cisco is betting big on AI, but thousands of employees are paying the price.
The company has seen strong demand for AI infrastructure, which has boosted investor confidence. However, like many other tech giants, Cisco is now restructuring its workforce to match its future business priorities.
The layoffs once again show how the AI wave is creating a strange situation in the tech industry — companies are growing in value, but jobs are still being cut.
For Cisco, the market celebrated the numbers. For employees, it brought another painful round of uncertainty.
