Cisco’s stock surged toward record highs after the networking company announced plans to cut jobs and increase investments in artificial intelligence.
The company reported upbeat quarterly earnings that exceeded analyst expectations. Revenue and profit figures topped market forecasts.
Cisco plans to reduce its workforce as part of a broader restructuring effort. The job cuts will free up capital for AI-focused initiatives.
The stock jumped more than 6% in extended trading following the announcement. Shares are now approaching their all-time high set in 2000.
The networking giant sees AI as a key growth driver for its business. Cisco aims to capture demand for AI infrastructure in data centers.
Management cited strong demand for networking equipment used in AI applications. The company expects AI-related orders to accelerate in coming quarters.
The restructuring will impact several thousand employees. Cisco did not specify exact numbers but confirmed the layoffs are significant.
Investors welcomed the shift toward higher-growth areas. The stock rally reflected optimism about Cisco’s AI strategy and cost discipline.
