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United States: Cisco cuts 4,000 jobs in AI pivot

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United States: Cisco cuts 4,000 jobs in AI pivot

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Sources: 2

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Sources: 2

United States-based Cisco Systems said on Wednesday it will cut nearly 4,000 jobs as part of a restructuring plan to shift investment toward artificial intelligence and related growth areas, including silicon, optics and security. The networking equipment maker said the layoffs are part of a broader effort to redirect spending and reorganize its business around technologies it sees as central to its role in the AI era. Cisco said it was reducing roles in some parts of the company while increasing investment in others, describing the overhaul as a move to concentrate resources where customer demand and long-term value creation are strongest. The company framed the restructuring as aligned with its strategy to use AI more widely across its products and operations. United States-based Cisco also raised its annual revenue forecast after reporting a surge in orders from hyperscale cloud and infrastructure customers, which are large buyers of networking and data-center equipment. The company said stronger demand from these hyperscalers supported its updated outlook and underlined steady spending in that segment. Shares of Cisco rose more than 17% in premarket trading on Thursday as investors responded to both the scale of the workforce reduction and the improved revenue guidance. The Reuters report placed the layoffs within a wider trend of job cuts across U.S. companies as they adjust to AI tools and changing demand patterns, while highlighting that Cisco’s move combined significant job losses with higher growth expectations and targeted strategic investment.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Wednesday Cisco announces nearly 4,000 job cuts
Wednesday Company outlines AI-focused restructuring strategy
Wednesday Spending redirected to silicon and optics
Wednesday Investments increased in security and AI
Thursday Shares rise over 17 percent premarket
This week Annual revenue forecast is raised
Recently Hyperscaler orders surge for Cisco
Recently U.S. firms announce AI-related layoffs

Why This Matters to You

Cisco's pivot to AI could impact your job or career. If you're in tech, consider upskilling in AI, silicon, optics, or security. Even outside tech, AI's rise may reshape your industry. Stay informed and adaptable.

The Bottom Line

Cisco's job cuts signal a shift in the tech industry towards AI and related fields. This could mean more job losses, but also new opportunities. Worth forwarding if you know someone in tech or considering a career change.