Cisco cuts 4,000 jobs

Cisco told employees on May 13 that it would eliminate fewer than 4,000 jobs in its fiscal fourth quarter as the networking company shifts spending toward artificial intelligence, security, silicon and optics. The move came the same day Cisco reported record quarterly revenue of $15.8 billion for the period ended April 25 and raised its outlook for AI-related orders and revenue. (blogs.cisco.com) Chief Executive Chuck Robbins said in a memo to staff that the company was “reducing roles in some areas” while making “clear, strategic investments” in businesses tied to AI demand. The cuts amount to less than 5% of Cisco’s workforce, according to Robbins’ memo. (blogs.cisco.com) Cisco had 86,200 employees as of July 26, 2025, according to its latest annual report, which means the planned reduction is broadly in line with the company’s stated ceiling. Most employee notifications were set to begin on May 14 and continue globally in line with local laws, Robbins said. ### How did Cisco describe the job cuts? Chuck Robbins said the restructuring reflected “hard decisions” about where Cisco invests, how it is organized and how its cost structure matches demand. In the memo published on Cisco’s corporate blog, he said the company would reduce its overall workforce in the fourth quarter by fewer than 4,000 jobs. (blogs.cisco.com) Cisco said affected employees would receive country-specific details on timing, benefits and support from their managers. The company said it would pay prorated fiscal 2026 bonuses to impacted workers and offer placement services for internal and external roles. (blogs.cisco.com) Robbins also said Cisco would provide one year of access to Cisco U courses and certifications, including training in AI, security and networking. ### What businesses is Cisco prioritizing? Cisco said the restructuring is intended to free up investment for “key growth opportunities including silicon, optics, security and artificial intelligence,” according to its May 13 filing with the U.S. (blogs.cisco.com) Securities and Exchange Commission. Robbins used similar language in his employee memo, saying Cisco was shifting resources toward areas where “demand and long-term value creation are strongest.” The company tied that strategy to customer demand in its quarterly earnings release. Cisco said total product orders rose 35% from a year earlier, or 19% excluding hyperscalers, while data center switching orders grew more than 40% and networking product orders increased by more than 50%. (blogs.cisco.com) Cisco also said AI infrastructure orders taken year to date reached $5.3 billion, prompting it to raise its fiscal 2026 AI orders expectation to $9 billion from $5 billion and its AI revenue expectation to $4 billion from $3 billion. (sec.gov) ### Why did the cuts come alongside strong results? Cisco reported third-quarter revenue of $15.8 billion, GAAP net income of $3.4 billion and non-GAAP net income of $4.2 billion on May 13. Robbins said the results showed “very strong, broad-based demand” for Cisco’s products and argued that the company’s technology is increasingly central to connecting and securing AI systems. In the same memo to employees, Robbins said the market was changing rapidly, competition was intensifying and customers were facing shortages of components needed for AI buildouts. (newsroom.cisco.com) He said companies that succeed in the AI era would be those that keep shifting investment toward the businesses with the strongest demand. That explanation came directly from Cisco management; the company did not present the layoffs as a response to weakening quarterly sales. ### What does Cisco say happens to employees now? Most notifications were due to start on May 14, Cisco said, with the process rolling out globally under local legal requirements. (newsroom.cisco.com) Managers and leaders were instructed to share the timing and support details directly with affected staff, according to Robbins’ memo. Cisco scheduled a companywide “Cisco Beat” session for May 21 at 8 a.m. Pacific time to discuss the changes and answer employee questions. On the investor side, Cisco is due to appear at the J.P. Morgan Global Technology, Media and Communications Conference on May 18 and May 19, followed by the Bank of America Global Technology Conference on June 4, according to its investor events page. (blogs.cisco.com)