Cisco is chopping almost 4,000 jobs, at the same time as its shares jumped sharply after the corporate posted better-than-expected outcomes.
The networking big mentioned the most recent layoffs will have an effect on lower than 5 p.c of its workforce. The job cuts are set to start on Could 14.
Curiously, the announcement got here at a time when Cisco’s inventory surged round 15 p.c in prolonged buying and selling on Wednesday.
Buyers cheered the corporate’s robust quarterly efficiency and upbeat steering.
CEO Chuck Robbins mentioned Cisco is sharpening its concentrate on key progress areas, particularly synthetic intelligence, safety, silicon and optics.
The message is evident: Cisco is betting large on AI, however hundreds of staff are paying the value.
The corporate has seen robust demand for AI infrastructure, which has boosted investor confidence. Nonetheless, like many different tech giants, Cisco is now restructuring its workforce to match its future enterprise priorities.
The layoffs as soon as once more present how the AI wave is creating an odd state of affairs within the tech trade — firms are rising in worth, however jobs are nonetheless being reduce.
For Cisco, the market celebrated the numbers. For workers, it introduced one other painful spherical of uncertainty.