Cisco Systems Inc. revealed on Wednesday its intention to downsize its workforce by 7% as part of a broader restructuring initiative. This move will lead to $1 billion in pre-tax charges to its financial results, as stated in a filing submitted to the Securities and Exchange Commission (SEC) on Wednesday.
"Cisco announced a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business," Cisco added. "Cisco expects to recognize approximately $700 million to $800 million of these charges in the first quarter of fiscal 2025 with the remaining amount expected to be recognized during the rest of fiscal 2025."
In its fourth-quarter earnings report, the networking hardware developer surpassed market predictions, which subsequently bolstered its shares by 6.18% during after-hours trading.