Cisco Announces Major Workforce Cut of 4,000 Jobs Amid Strong Push Into Artificial Intelligence Investment
Cisco is restructuring its global operations and cutting over 4,000 jobs as it redirects resources toward artificial intelligence despite reporting stronger than expected quarterly earnings and revenue growth
Cisco Systems has moved ahead with a significant restructuring plan that includes laying off more than 4,000 employees worldwide. The decision comes as the company sharpens its focus on artificial intelligence, aiming to align its workforce and investments with rapidly evolving technology demands. The announcement was made shortly after the company released its latest financial results, which surprisingly showed stronger than expected performance.
Interestingly, the job cuts were revealed just hours after Cisco reported its financial earnings for the third quarter of fiscal year 2026. The tech giant posted revenue of 15.8 billion dollars, surpassing Wall Street estimates of 15.56 billion dollars. Earnings per share stood at 1.06 dollars, slightly above the expected 1.04 dollars. The company also recorded a 12 percent year on year revenue growth compared to 14.15 billion dollars in the same quarter last year.
Despite the positive earnings report, Cisco confirmed that it will reduce its global workforce by around 5 percent. The restructuring is expected to impact more than 4,000 employees. According to reports, the company’s stock responded positively to the announcement, rising by as much as 20 percent as investors reacted to its AI focused strategy shift.
CEO Chuck Robbins addressed the move, emphasizing that the decision is part of Cisco’s long term transformation strategy. He expressed confidence in the company’s direction, suggesting that difficult choices are necessary to stay competitive in the AI driven era. He noted that the reduction in workforce will be less than 5 percent of the total employee base and is intended to reposition the company for future growth.
Cisco, headquartered in San Jose, stated that the restructuring reflects a broader shift toward artificial intelligence and high value investment areas. The company plans to redirect resources into segments where demand is expected to grow the fastest, positioning itself more aggressively in the emerging AI ecosystem.
