Cisco Announces Job Cuts Amid AI-Focused Restructuring and Revenue Growth
Cisco to cut nearly 4,000 jobs as AI restructuring boosts revenue outlook, hyperscaler orders
MintImage: Mint
Cisco Systems, based in San Jose, California, plans to cut nearly 4,000 jobs, representing less than 5% of its workforce, as it shifts focus towards artificial intelligence (AI) investments. This restructuring comes alongside a raised revenue forecast, driven by a surge in hyperscaler orders, with AI infrastructure orders reaching $5.3 billion this fiscal year.
- 01Cisco will cut nearly 4,000 jobs as part of an AI-focused restructuring.
- 02The layoffs will affect less than 5% of its workforce and occur in the fourth quarter of fiscal 2026.
- 03The company raised its fiscal 2026 revenue forecast to between $62.8 billion and $63 billion.
- 04Cisco secured $5.3 billion in AI infrastructure orders from hyperscalers this fiscal year.
- 05The restructuring plan is expected to cost up to $1 billion.
Advertisement
In-Article Ad
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.
Advertisement
In-Article Ad
The job cuts may affect employees and their families, while the restructuring could lead to increased investment in AI, potentially creating new job opportunities in the future.
Advertisement
In-Article Ad
Reader Poll
Do you think Cisco's focus on AI will lead to more job opportunities in the future?
Connecting to poll...
More about Cisco Systems
Read the original article
Visit the source for the complete story.

