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.