Cisco's earnings exceeded expectations, and layoffs boosted the stock price by 15%

According to Odaily Planet Daily, citing data from msx, Cisco (CSCO.O) saw its stock price hit a new all-time high after announcing a new round of layoffs and increasing investments in AI.

The company stated it will cut nearly 4,000 employees, accounting for less than 5% of its total workforce. According to regulatory filings, this restructuring is expected to incur up to $1 billion in pre-tax charges, with approximately $450 million to be recognized in the current fiscal quarter, primarily related to severance and other restructuring costs.

CEO Chuck Robbins said in a letter to employees: "While we are reducing headcount in some areas, we are also making clear and strategic investments—especially in chips, optics, security, and internal AI applications for our employees."