"Cisco plans to cut about 4,000 jobs to refocus on AI, affecting less than 5% of its workforce. Despite layoffs, Cisco sees strong quarterly results and raises sales forecast on AI demand. Cisco's restructuring will invest more in AI chips, fiber optics, and security amid job cuts."
"The layoffs, which affect less than 5% of Cisco's workforce, come as the company reported stronger-than-expected quarterly results and raised its sales forecast on growing demand for AI infrastructure. In a regulatory filing on Wednesday, Cisco said the restructuring is expected to cost up to $1 billion, largely due to severance expenses."
"The company said it expects to record about $450 million of those charges in the current quarter, with the remaining costs carrying into fiscal 2027. The company's stock was up more than 17% in after-hours trading."
"In the memo, Robbins said Cisco is shifting investments toward areas "where demand and long-term value creation are strongest," including AI chips, fiber optics, and security. The company said it plans to continue hiring in strategic areas while eliminating some roles as part of its AI-related restructuring."
Cisco will lay off about 4,000 employees, affecting less than 5% of its workforce, as part of a restructuring to increase focus on artificial intelligence. The company reported record Q3 FY26 revenue of $15.8 billion, up 12% year over year, with double-digit top- and bottom-line growth. Cisco raised its sales forecast due to growing demand for AI infrastructure. The restructuring is expected to cost up to $1 billion, mainly from severance, with about $450 million recorded in the current quarter and the remainder extending into fiscal 2027. Cisco plans to shift investment toward AI chips, fiber optics, and security, while continuing hiring in strategic areas and eliminating some roles.
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