Cisco Cuts 4,000 Jobs While Increasing Investments In AI And Future Technology Growth Areas!

The shift toward AI is changing how major tech companies are planning for the future, and Cisco is the latest to take major steps in that direction.

 

TL;DR

 

• Cisco is cutting nearly 4,000 jobs to focus more on AI and high-growth areas.
• It secured $5.3B in AI orders and raised its full-year outlook to $9B.
• Strong results and AI demand pushed shares up over 16% after hours.

Cisco said it will cut nearly 4,000 jobs as part of a broader restructuring effort aimed at redirecting investments toward AI and other high-growth areas. The company explained that the move is linked to changing demand patterns in the technology and networking space, where AI infrastructure is becoming a key priority for customers.

The company said the layoffs will impact fewer than 5% of its workforce and are part of an effort to realign resources with evolving technology priorities.

Despite the job cuts, Cisco continues to see strong business momentum. Demand from hyperscalers building large-scale AI data centers has been a major driver of growth. These customers are investing heavily in the infrastructure needed to support AI workloads, which is boosting orders for networking and related technologies.

The company has already secured $5.3 billion in AI infrastructure orders this year and has raised its full-year expectation to $9 billion, reflecting stronger-than-expected demand in this segment. This growing pipeline highlights how quickly AI-related spending is expanding across the industry.

Cisco also reported better-than-expected quarterly revenue of $15.84 billion, coming in above analyst estimates. Following the strong performance, the company increased its full-year revenue forecast, signaling continued confidence in its business outlook despite the restructuring.

Alongside workforce reductions, Cisco is increasing investment in areas such as silicon, optics, security, and AI-powered internal tools. These focus areas are expected to support its long-term strategy as it builds out capabilities for the next phase of AI-driven networking and infrastructure.
 
Investors responded positively to the update, with Cisco shares rising more than 16% in extended trading. The reaction reflects growing optimism around AI infrastructure demand and Cisco’s positioning within that market.

As AI adoption accelerates, Cisco is positioning itself to benefit from the shift while streamlining parts of its business that are no longer central to its growth strategy.