Cisco Systems, headquartered in San Jose, California, announced plans to cut nearly 4,000 jobs, which is less than 5% of its global workforce, as part of a restructuring aimed at increasing investment in artificial intelligence (AI) and related growth areas. This decision comes alongside a significant increase in the company's annual revenue forecast, which has been raised to between $62.8 billion and $63 billion for fiscal 2026, up from the previous estimate of $61.2 billion to $61.7 billion. The company has reported securing $5.3 billion in AI infrastructure orders from hyperscalers this fiscal year, prompting the upward revision of its revenue outlook. Cisco's Chief Executive Officer, Chuck Robbins, emphasized that companies that focus their investments on areas with strong demand will thrive in the AI era. This restructuring follows previous job cuts as Cisco streamlines operations to prioritize high-growth sectors, including AI and cybersecurity. The total cost of the restructuring plan is expected to reach up to $1 billion, with a portion of this cost recognized in the fourth quarter of fiscal 2026.