Cisco is set to slash thousands of jobs this week as part of a new round of “strategic investments” in its workforce, cuts that were announced alongside Cisco posting robust earnings and its stock price surging more than 15% to a new triple-digit high.

Cisco CEO Chuck Robbins outlined the job cuts in an email to employees but also posted in a blog post, downplaying that the cuts would impact “fewer than 4,000 jobs, representing less than 5% of our total employee base.” Robbins added that most of the thousands of employees set to lose their jobs will be notified May 14, “and continue globally in alignment with applicable local laws and regulations.”

Robbins hinted in the post that the cuts were tied to an operating model that needs to adjust to AI use.

“The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest,” Robbins wrote. “I’m confident Cisco will be one of those winners. This means making hard decisions – about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

Robbins added that those investment areas would be focused in silicon, optics, security, and in employees increasing their use of AI.

“These investments are building from a position of strength – and focusing on the technologies and businesses that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future,” Robbins explained.

That position of strength is notable as Cisco’s latest earnings included a 12% year-over-year increase in revenues, hitting a record $15.8 billion, with Robbins also touting “double-digit top and bottom-line growth.”

Investors were buoyed by all of this news, spiking Cisco’s stock price in after-hours trading to more than $120 per share.

Check back with SDxCentral later this week for more insight into Cisco’s latest job cuts and earnings.