Cyclosporine works by binding to a protein called cyclophilin in the cytoplasm of T-lymphocytes. This complex then inhibits the enzyme calcineurin, which is crucial for activating the transcription of interleukin-2 (IL-2). IL-2 is a cytokine that promotes the growth and activation of T-cells. By suppressing IL-2 production, cyclosporine effectively reduces the immune response, making it useful in the context of organ transplantation and certain autoimmune diseases.