Cisco Systems said Wednesday it was cutting 7% of its global workforce.
The San Jose, California-based company estimates it will recognize pre-tax charges of up to $1 billion in connection with the plan, with $700 million to $800 million of these charges being recognized in the first quarter.
The mass layoffs come on top of another round of cuts Cisco made earlier this year: Cisco had said in February it would cut 5% of its global workforce, or more than 4,000 jobs, while lowering its annual revenue target.
Still, the company’s shares were up 5% in extended trading after it forecast better-than-expected first-quarter revenue on Wednesday.
The company expects first-quarter revenue in the range of $13.65 billion and $13.85 billion, while analysts on average expect $13.71 billion, according to LSEG data.
