Cisco to Cut Fewer Than 4,000 Jobs in AI-Focused Restructuring

NEW DELHI — Cisco plans to cut fewer than 4,000 jobs worldwide as part of a restructuring effort aimed at sharpening its focus on artificial intelligence and other high-growth technology areas.

The layoffs, which will affect less than 5% of the company’s global workforce, were disclosed by CEO Chuck Robbins and Cisco’s executive leadership team in an internal memo issued alongside the company’s third-quarter fiscal 2026 earnings.

“The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest,” Robbins said in the memo.

The company said most affected employees will begin receiving notifications May 14, with the process being carried out globally in accordance with local laws and regulations.

Cisco said impacted workers will receive prorated fiscal 2026 bonuses, severance support and access to the company’s placement services program, which it said has helped nearly 75% of participants secure new roles.

The networking giant said employees affected by the restructuring will also receive one year of access to Cisco U courses and certifications covering AI, cybersecurity, networking and related technologies.

While reducing headcount in some divisions, Cisco said it will continue making “clear, strategic investments” in areas such as silicon, optics, security and broader use of AI across its operations.

“These investments are building from a position of strength and focusing on the technologies and businesses that will accelerate our growth,” the memo said.

The restructuring comes as Cisco raised its business outlook, reflecting growing enterprise spending on AI-linked infrastructure and services.

Cisco reported record quarterly revenue of $15.8 billion, up 12% from a year earlier. (Source: IANS)