Cisco Plans 5,000 Job Cuts, Shares Jump Over 7% on AI Orders
Following a Q3 revenue beat—$14.8 billion and $0.91 adjusted EPS—Cisco will cut about 5,000 jobs, roughly 6% of its 83,000-strong workforce, to accelerate AI, cloud networking and security investments. Pre-market, Cisco shares rose over 7% as the company secured significant new AI infrastructure orders, lifting Dow Jones futures.
1. Job Cuts and Strategic Shift
Cisco announced plans to eliminate approximately 5,000 positions—about 6% of its 83,000 employees—to free resources for AI, cloud networking and security R&D. The headcount reduction is part of a broader restructuring aimed at streamlining operations and prioritizing high-growth technology areas.
2. Earnings Beat Underpins Confidence
In its fiscal third quarter, Cisco reported revenue of $14.8 billion and adjusted EPS of $0.91, each surpassing analyst estimates by over 2%. Strong top-line performance and robust margins provided management the latitude to pursue aggressive cost optimization and reinvestment.
3. Market Reaction to AI Orders
Ahead of the trading session, Cisco shares climbed more than 7% after the company disclosed substantial new orders for generative AI infrastructure. That demand not only fueled the stock’s pre-market surge but also helped lift Dow Jones futures, signaling investor enthusiasm for Cisco’s AI pivot.