May 13 (Reuters) – Cisco said on Wednesday it plans to cut nearly 4,000 jobs, or 5% of its workforce, as part of a restructuring plan to invest more in growth areas such as artificial intelligence, sending its shares up 14% 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.
(Reporting by Juby Babu in Mexico City; Editing by Shinjini Ganguli)
