Cisco has announced plans to cut fewer than 4,000 jobs worldwide as part of a new restructuring move aimed at strengthening its focus on artificial intelligence and other fast-growing technology areas.
The layoffs, which will affect less than 5 percent of Cisco’s global workforce, were shared by CEO Chuck Robbins and the company’s executive leadership team in an internal memo released alongside Cisco’s third-quarter FY26 earnings.
In the memo, Robbins said the companies that succeed in the AI era will be those that stay focused, move quickly, and continue shifting investments toward areas with strong demand and long-term value.
Cisco said most affected employees will start receiving notifications from May 14. The company added that the process will be handled globally in line with local laws and regulations.
The company also said impacted workers will receive pro-rated FY26 bonuses, severance support, and access to Cisco’s placement services program. According to Cisco, the program has helped nearly 75 percent of participants find new roles.
Affected employees will also get one year of access to Cisco U courses and certifications covering AI, cybersecurity, networking, and related technologies.
Even as it reduces jobs in some divisions, Cisco said it will continue making strategic investments in key areas such as silicon, optics, security, and wider AI adoption across its business.
The company said these investments are being made from a position of strength and are focused on technologies and business areas that can help speed up future growth.
The restructuring comes as Cisco raises its business outlook, supported by stronger enterprise spending on AI-related infrastructure and services. Cisco reported record quarterly revenue of $15.8 billion, up 12 percent from the same period last year.
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