📉Cisco Cuts Nearly 4,000 Jobs to Double Down on AI Infrastructure
Cisco Cuts Nearly 4,000 Jobs to Double Down on AI Infrastru…
TL;DR
Cisco announced on May 14 it will reduce its workforce by under 5% — close to 4,000 employees — and redirect investment into AI infrastructure, silicon, optics…
Cisco announced on May 14 it will reduce its workforce by under 5% — close to 4,000 employees — and redirect investment into AI infrastructure, silicon, optics and security. The company reported record Q3 FY2026 revenue of $15.8B and $5.3B in AI orders from hyperscalers, raising its full-year AI revenue forecast to $4B.
Key Points
Full-year AI orders projected to reach $9B, up from prior $5B estimate
Restructuring charge of up to $1B, with $450M booked in Q4
Joins Block and others citing AI as the rationale for workforce cuts
Affected staff offered severance, training and placement services
Why It Matters
Cisco's move marks a clear pivot for one of networking's biggest incumbents — and signals that the AI capex boom is now reshaping legacy enterprise tech, not just hyperscaler P&Ls.
Frequently Asked Questions
Why does this matter?
Cisco's move marks a clear pivot for one of networking's biggest incumbents — and signals that the AI capex boom is now reshaping legacy enterprise tech, not just hyperscaler P&Ls.
What happened?
Cisco announced on May 14 it will reduce its workforce by under 5% — close to 4,000 employees — and redirect investment into AI infrastructure, silicon, optics…
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