(Reuters) -Cisco Systems announced a restructuring plan on Wednesday to invest in key growth opportunities and drive more efficiencies.
It 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.
San Jose, California-based Cisco’s shares rose 5% in trading after the bell.
Reuters exclusively reported last week that the company is undertaking a second round of job cuts this year, which are likely to affect thousands of employees.
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.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
