Cisco will cut close to 4,000 jobs in the fourth quarter of FY26 as the company shifts more investment toward artificial intelligence, cybersecurity, silicon, and optics. The move was announced by Cisco CEO Chuck Robbins in a message sent to employees and later shared on the company’s blog.
The layoffs are expected to affect less than 5% of Cisco’s global workforce, with notifications starting from May 14 depending on local labour laws in different countries.
The announcement came as Cisco reported strong third-quarter results for the period between January and April 2026. The company posted record revenue of $15.8 billion, up 12% from the same quarter last year.
Robbins said Cisco is reshaping parts of its business as competition in the technology sector grows and customers continue increasing spending on AI infrastructure. He noted that the company needs to move resources toward areas expected to drive future growth and long-term value.
Despite the job cuts, Cisco said it will continue hiring in key growth areas linked to AI and advanced technologies. The company identified silicon, optics, security, and AI-powered operations as major focus areas for future investment.
Robbins also said Cisco delivered strong financial results despite facing a fast-changing market, rising competition, and shortages of important components needed for AI systems and networking products.
To support affected employees, Cisco said workers leaving the company will receive pro-rated FY26 bonuses, career transition assistance, and access to Cisco U learning courses and certification programmes for one year. The company added that its placement programme has helped many former employees secure new roles in the past.
Cisco said managers will share details about timelines, benefits, and available support directly with employees in each country. The company is also expected to discuss the restructuring plans further during its Cisco Beat meeting on May 21.
In his message, Robbins thanked employees impacted by the layoffs for their contribution and dedication to the company, adding that Cisco aims to handle the transition with respect and transparency.
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