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Cisco Cuts 4,000 Jobs for AI Future
14 May
Summary
- Cisco plans to cut nearly 4,000 jobs to focus on AI.
- AI infrastructure orders reached $5.3 billion this fiscal year.
- Annual revenue forecast was raised due to strong hyperscaler orders.
Cisco is undergoing a significant restructuring, including the elimination of nearly 4,000 jobs, to pivot investments toward artificial intelligence and other high-demand growth sectors. This strategic shift is poised to strengthen the company's position in the evolving tech landscape.
The networking equipment maker has seen substantial growth, particularly from hyperscalers, leading to an upward revision of its annual revenue forecast. Cisco has already booked $5.3 billion in AI infrastructure orders this fiscal year, and now anticipates reaching $9 billion for the full year.
This restructuring, affecting less than 5% of its workforce, is expected to cost up to $1 billion. The company's third-quarter revenue exceeded expectations at $15.84 billion, with strong performance in networking product orders growing over 50% year-over-year.
