Cisco shares jump 15% on AI demand as networking giant announces 4,000 job cuts
Cisco Systems reported a sharp rise in its stock price driven by strong investor sentiment regarding its AI strategy, even as it confirmed plans to reduce its global workforce by nearly 4,000 positions.
Cisco Systems reported a 15% surge in its share price on Wednesday, driven by surging orders for artificial intelligence infrastructure. The market reaction follows a period where investor sentiment regarding the company’s AI strategy has strengthened significantly, with shares hitting record highs late in 2025 and continuing to rally throughout 2026.
Concurrently, the networking giant announced it will reduce its workforce by nearly 4,000 positions. The job cuts come as the company navigates a shift in its business model, aligning its operational structure with the growing demand for data centre connectivity and AI-related hardware solutions.
The announcement underscores a broader trend in the technology sector, where institutional investors are increasingly rewarding companies with clear exposure to artificial intelligence growth. Cisco’s stock movement mirrors wider gains in the sector, including significant performance from peers such as Amazon and NVIDIA, reflecting heavy institutional buying in AI-related assets.
While specific financial figures for revenue or profit margins were not detailed in the immediate release, the market’s positive response indicates that Wall Street views Cisco’s current trajectory as aligned with the high-growth demands of the AI infrastructure market. The company’s ability to balance workforce reduction with capitalising on new technological trends appears to be resonating with investors.
The job reduction plan marks a strategic adjustment for the long-standing technology firm. As the industry continues to evolve, Cisco’s focus on AI infrastructure positions it to capture value from the expanding needs of cloud computing and data centre operators, even as it streamlines its internal operations.
