Cisco Announces Major Layoffs Amid Strategic Shift to AI and Cybersecurity

The tech giant plans to cut 7% of its workforce while refocusing on high-growth sectors, despite reporting better-than-expected earnings.

Cisco will lay off approximately 5,900 employees, its second major round of cuts this year.
The company aims to invest $1 billion in AI and cybersecurity, including the recent $28 billion acquisition of Splunk.
Fourth-quarter revenue dropped 10% to $13.64 billion, yet exceeded Wall Street estimates.
Cisco shares rose by over 7% following the layoff announcement and earnings report.
The restructuring plan will result in up to $1 billion in pre-tax charges.