AI Causes Another 4,000 Layoffs

Cisco announced a cut of 4,000 jobs as it repositions toward AI, calling itself “the critical infrastructure for the AI era.” Its latest quarter showed revenue up 12% to $15.8 billion and EPS up 37% to $0.85. The layoff announcement drove Cisco’s stock roughly 15% higher, despite a modest $410 billion market cap. The article frames the cuts as both a strategic AI shift and a possible cost-saving move to boost earnings, and places Cisco alongside other large tech names (Microsoft, Alphabet) and AI winners like NVIDIA in the debate over whether AI will streamline work or replace jobs—an issue affecting equity valuations across the tech sector.