Cisco to Cut Under 4,000 Jobs While Pivoting Investment Toward AI Infrastructure

Cisco announced a Q4 workforce reduction affecting fewer than 4,000 employees, less than 5 percent of its global headcount, with notifications beginning May 14. The cuts arrive alongside record Q3 FY26 revenue of $15.8 billion, up 12 percent year over year, framing the layoffs as a reallocation rather than a response to weak results. Impacted staff will receive pro-rated FY26 bonuses, placement services, and a year of access to Cisco U training in AI, security, and networking.

CEO Chuck Robbins positioned the move as a discipline play for the AI era, redirecting capital toward silicon, optics, security, and internal AI adoption. The company cited intensifying competition and a global shortage of components needed to support customer AI buildouts as pressures forcing tighter focus on the highest-growth segments of its portfolio.

The announcement continues a multi-year pattern of restructurings at Cisco as the networking giant tries to reshape itself around AI infrastructure and its Splunk-anchored security business. Remaining staff will hear more at an internal all-hands on May 21.