Cisco Reports Record Revenue Amid 4,000 Layoffs
Cisco announces record revenue and 4,000 layoffs in the same day
Ars Technica
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Cisco Systems, Inc. reported a record revenue of $15.8 billion for fiscal Q3 2026, a 12% year-over-year increase. However, the company also announced a reduction of 4,000 jobs, or less than 5% of its workforce, citing the need to adapt to the AI era and focus investments on growth areas.
- 01Cisco's revenue reached $15.8 billion, marking a 12% increase year-over-year.
- 02The company will lay off 4,000 employees, representing less than 5% of its workforce.
- 03Layoffs are part of a strategy to invest in AI and related technologies.
- 04Cisco expects AI infrastructure orders to rise to $9 billion this fiscal year.
- 05The layoffs will begin on May 14, 2026, in compliance with local laws.
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Cisco Systems, Inc., a leading technology company, announced record earnings of $15.8 billion for fiscal Q3 2026, reflecting a 12% increase from the previous year. Despite this financial success, CEO Chuck Robbins revealed that the company will reduce its workforce by 4,000 jobs, which is less than 5% of its total employees. This decision aligns with a broader industry trend as companies adapt to the increasing importance of artificial intelligence (AI). Robbins emphasized the need for Cisco to shift investments toward areas with high demand and long-term value, particularly in AI technologies. The company has already sold $5.3 billion in AI infrastructure this fiscal year and anticipates total orders to reach $9 billion, up from $5 billion. The layoffs will commence on May 14, 2026, with notifications rolling out globally in accordance with local laws and regulations.
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The layoffs will affect thousands of employees, impacting their livelihoods and the local economy.
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