Cisco Systems has announced its plans to cut nearly 4,000 jobs as part of a major restructuring aimed at redirecting its investment toward artificial intelligence and other high-growth areas. This moves from Cisco comes amid the increasing demand from hyperscalers and a renewed focus on next-generation networking infrastructure. According to a report by Reuters, Cisco CEO Chuck Robbins said, “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.” Cisco also plans to make some strategic investments in silicon, optics, security and AI integration across its operations, while reducing roles in legacy business units.
Cisco layoffs : What the company said about impacted employees
“For employees whose roles are impacted, leaders will share details directly — including timing, available resources, support, and benefits in each country. This will include pro-rated payment of FY26 bonuses to impacted employees,” said Robbins. Cisco also added that it will assist the employees in finding new jobs. “We will provide support in finding new opportunities, whether internal or external, through Cisco’s placement services — a program that has seen 75 percent of participants discover their next role. We are also committed to continued personalized learning and will provide one year of access to all Cisco U courses and certifications, covering AI, Security, Networking, and more,” added Robbins. Shares of Cisco rose more than 16% in extended trading following the announcement. The company reported third-quarter revenue of $15.84 billion, beating analyst estimates, and raised its full-year forecast to between $62.8 billion and $63 billion.Cisco has already taken $5.3 billion in AI infrastructure orders from hyperscalers this fiscal year and expects that figure to reach $9 billion. “While we are reducing roles in some areas, we are making clear, strategic investments — particularly in silicon, optics, security, and in our employees’ use of AI across the company. These investments are building from a position of strength — and focusing on the technologies and businesses that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future,” said Cisco CEO Robbins. Analysts say the restructuring reflects how hyperscaler capital expenditure is expanding beyond chips to high-speed networking systems that connect large data centers.
