Cisco Shares Jump 18% After 5% Workforce Cut Signals AI Push

U.S. networking equipment company Cisco carried out a large workforce reduction of about 4,000 employees, equal to 5% of its staff, sending the market a clear signal that it aims to shift toward an artificial intelligence-centered business. The company showed its intention to reduce an outdated labor structure and move quickly to capture rapidly expanding AI demand. The step is being viewed as part of Cisco’s effort, as a major networking equipment player, to concentrate resources on AI-related growth opportunities. As the size of the cuts and the AI-focused strategy drew attention, Cisco shares jumped 18% in after-hours trading. Investors are expected to watch whether the restructuring helps Cisco respond to AI demand and improve performance. Source: mk.co.kr