Cisco came in better than market expectations and that is reflected in share price.
That's not exactly a ringing endorsement given that the market expectations were down from previous quarters/years.
In addition Cisco is moving towards a recurring revenue model and away from one off purchases of hardware. Recurring revenue is up.
Hasn't Cisco been moving towards a recurring revenue model for the last couple of years? Meraki was the start of the recurring revenue model. Hasn't turned the tide yet.
Also Cisco is giving a higher dividend back to shareholders.
Yeah, at the cost of cutting Operational Expenses, i.e. head count.
Trump has also indicated he might do some sort of cash repatriation deal.
Cisco could bring that money back to the US at any time and pay taxes just like you & I have to do. Taxes are a fact of life, unless you're rich. Why not use that money instead of cutting people and making the rest work harder? My old team is struggling with the same work load and 20% less staff. And less qualified staff at that.
Finally Cisco's share of revenue from security products is up. Actually its not all doom and gloom.
So why are they making cuts in a profitable business unit?
That said most posters on this site are so depressed and angry with Cisco (although not so depressed and angry they will get off their huge yank arses and leave) they wouldn't believe the company was doing OK if the corridors were paved with gold and our pay checks had half a dozen extra noughts on them.
Being angry is a natural reaction to being treated like dirt. ELT keeps talking about the Cisco family, yet would rather cut costs by getting rid of older, more expensive workers instead of the poor performing workers who aren't worth keeping because it saves more money. And the corridors are covered in worn out stained carpets and cubicles whose fabric pattern was the trend of the '90's. Not exactly "gold".