Cisco has released its third quarter earnings, showcasing record revenue driven by a surge in AI-related orders, which has led to an 18% jump in its stock price. In light of this strong performance, the company announced it will cut approximately 4,000 jobs, representing about 5% of its workforce, to focus on its fast-growing AI market. This restructuring comes as Cisco aims to enhance its investment in AI infrastructure. Despite the layoffs, the outlook remains optimistic, with the company raising its annual revenue forecast significantly. Analysts note the strong demand and speculate on the potential for further stock price increases in the upcoming quarters.