Cisco, a global technology conglomerate, has revealed plans to reduce its workforce by fewer than 4,000 jobs worldwide. This move is part of a restructuring initiative aimed at enhancing its emphasis on artificial intelligence (AI) and other rapidly growing technology sectors.
CEO Chuck Robbins and the Executive Leadership Team disclosed the layoffs in an internal memo released alongside the company’s third-quarter FY26 earnings. Robbins emphasized the importance of focus, urgency, and continuous investment realignment toward areas with strong demand and long-term value creation in the AI era.
Impacted employees, constituting less than 5% of the company’s global workforce, will start receiving notifications from May 14. The process will be executed globally in compliance with local laws and regulations. Affected employees will receive pro-rated FY26 bonuses, severance support, and access to the company’s placement services program, which has helped nearly 75% of participants secure new roles.
Additionally, employees affected by the restructuring will have one year of access to Cisco U courses and certifications covering AI, cybersecurity, networking, and related technologies. While downsizing certain divisions, Cisco plans to maintain strategic investments in areas like silicon, optics, security, and the expanded utilization of AI throughout its operations.
The restructuring aligns with Cisco’s commitment to making clear, strategic investments that will drive growth. Despite the job cuts, the company is optimistic about its business outlook, reflecting increased enterprise spending on AI-related infrastructure and services. Cisco has also reported a record quarterly revenue of $15.8 billion, marking a 12% year-on-year increase.
