Cisco Systems (CSCO) has announced it will cut about 7% of its workforce as part of its strategic shift towards high-growth sectors such as cybersecurity and artificial intelligence (AI). This decision follows a previous reduction of 5% in February, affecting around 4,250 employees.

In its fiscal fourth-quarter report, Cisco reported revenue of $13.6 billion, marking a 10% decrease year-over-year, and earnings per share (EPS) of $0.54, down 44%. Despite these declines, the results exceeded analysts’ projections, according to Visible Alpha.

Looking ahead, Cisco forecasts fiscal 2025 revenue between $55 billion and $56.2 billion, with EPS expected to range from $1.93 to $2.05. Analysts had anticipated revenue of $55.6 billion and EPS of $2.30.

The company’s quarterly subscription revenue reached $27.4 billion, bolstered by its $28 billion acquisition of cybersecurity firm Splunk in March, which now represents more than half of Cisco’s total sales.

Cisco’s stock surged more than 5% in after-hours trading on Wednesday, following a modest gain during regular trading hours.