Cisco to Lay Off Fewer Than 4,000 in Restructuring

Cisco Systems, the San Jose, California-based networking giant, announced plans Wednesday to lay off fewer than 4,000 employees, representing less than 5 percent of its global workforce of about 86,200, as part of a restructuring to prioritize artificial intelligence, silicon, optics and security. Notifications to affected workers began May 14 in accordance with local laws.

The move accompanies stronger-than-expected fiscal third-quarter results ended April 25, with revenue reaching a record $15.84 billion, up 12 percent from $14.15 billion a year earlier. GAAP net income rose to $3.4 billion from $2.5 billion, while non-GAAP earnings per share came in at $1.06, surpassing estimates. Product orders surged 35 percent year-over-year, including $1.9 billion in AI infrastructure orders from hyperscalers, up from $600 million last year. Year-to-date hyperscaler AI orders totaled $5.3 billion, prompting Cisco to raise its full fiscal 2026 AI orders target to $9 billion from $5 billion.

CEO Chuck Robbins described the restructuring in a blog post and internal memo as a strategic shift from a position of strength. "The companies that will win in the AI era will be those with focus,...