Shares of networking giant Cisco Systems Inc. soared between 19 and 20 percent in extended trading on May 13 after the company reported solid third-quarter earnings and revenue numbers. The company also delivered a better-than-anticipated forecast, as its AI story has begun resonating with Wall Street. After hitting a record late last year, the stock continues to rally in 2026.
To better focus on the fast-growing AI market, Cisco is launching a restructuring plan that includes cutting thousands of jobs. The company stated it will cut fewer than 4,000 positions, representing less than 5 percent of its workforce.
This restructuring is expected to cost the networking company up to $1 billion in severance, one-time termination benefits, and other costs.