By Denny Jacob

Cisco Systems Inc. said it expects to recognize pretax charges of around $600 million in conjunction with a restructuring plan.

The networking-equipment giant said the charges, which are primarily cash-based, will consist of severance and other-time termination benefits, real estate-related charges and other costs. Cisco said it expects to recognize about $300 million of these charges in the second quarter, about $200 million in the second half of fiscal 2023 and the remaining amount primarily through the first quarter of fiscal 2024.

Cisco said it will take action under its plan beginning in the second quarter of fiscal 2023. The company said the restructuring plan, issued Wednesday, is to rebalance the company and enable further investment in key priority areas.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

November 16, 2022 17:12 ET (22:12 GMT)

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