Cisco forecasts strong sales growth, plans job cuts
Cisco Systems saw its shares climb in after-hours trading after reporting a better-than-expected sales forecast, projecting revenue as high as $16.9 billion for the current quarter. To focus on its growing AI market, however, the company says it plans to cut fewer than 4,000 jobs. The restructuring comes as Cisco looks to shore up its competitive position in the AI sector, with the company anticipating $9 billion in orders from data center customers in the current fiscal year, well above the $5 billion it initially projected.
Cisco Systems saw its stock move higher in after-hours trading after issuing a stronger-than-expected revenue outlook, projecting up to $16.9 billion for the current quarter.
As part of its strategic shift toward the growing AI market, the company also announced plans to reduce its workforce by fewer than 4,000 roles.
Positioning for AI Growth
The restructuring is aimed at strengthening Cisco’s position in the AI space, where demand for infrastructure and networking solutions continues to accelerate.
The company now expects to generate approximately $9 billion in orders from data center customers this fiscal year—significantly higher than its earlier projection of $5 billion.
Balancing Growth and Transition
While the job cuts reflect an internal realignment, the upgraded outlook and rising demand suggest Cisco is gaining traction as enterprises scale their AI capabilities.
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