NEW DELHI — Cisco plans to cut fewer than 4,000 jobs worldwide as part of a restructuring effort aimed at shifting more resources toward artificial intelligence and other faster-growing technology businesses.
The company said the reductions will affect less than 5% of its global workforce. The move was disclosed by CEO Chuck Robbins and Cisco’s executive leadership team in an internal memo released 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.
Cisco said most affected employees will begin receiving notifications starting May 14. The company said the process will be carried out globally in accordance with local laws and regulations.
Employees affected by the restructuring will receive prorated fiscal 2026 bonuses, severance support and access to Cisco’s placement services program. The company said that program has helped nearly 75% of participating employees secure new roles.
Cisco also said affected employees will receive one year of access to Cisco U courses and certifications covering artificial intelligence, cybersecurity, networking and related technologies.
While reducing headcount in some areas, Cisco said it will continue making strategic investments in silicon, optics, security and the 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, citing stronger enterprise spending on AI-related infrastructure and services.
Cisco reported quarterly revenue of $15.8 billion, up 12% from a year earlier. (Source: IANS)
