Cisco to lay off 4,000 employees amid AI-led restructuring
What's the story
Cisco Systems, the networking equipment maker, has announced plans to cut its workforce by nearly 4,000 employees in Q4 FY26. The decision comes as part of an AI-driven business restructuring strategy. Cisco reported a strong performance for Q3 FY2026 with revenue soaring to $15.84 billion and net income hitting $3.4 billion.
Leadership response
Layoffs to begin from today
Cisco's CEO Chuck Robbins confirmed the job cuts in a blog post after Q3 earnings. He said, "With this, we are making changes today that will result in the reduction of our overall workforce in Q4 by fewer than 4,000 jobs, representing less than 5% of our total employee base." The company plans to notify affected employees from today and provide support through Cisco's placement services for new opportunities.
Investment focus
Q3 FY2026 revenue soars to $15.84 billion
Cisco is doubling down on strategic investments in silicon, optics, security, and employee use of AI. Robbins emphasized that these investments are made from a position of strength and focus on technologies that will drive growth and innovation for customers and partners. The company reported a 12% year-on-year increase in Q3 FY2026 revenue to $15.8 billion with GAAP net income at $3.4 billion compared to $2.5 billion in Q3 fiscal 2025.
Business performance
Robust demand and AI infrastructure orders surge
Cisco reported a strong business momentum in Q3 FY2026 with total product orders rising 35% year-on-year. Even without hyperscaler customers, product orders grew 19%, showing healthy demand from a broad customer base. The company also revealed that it has secured $5.3 billion worth of AI infrastructure orders this fiscal year and raised its fiscal 2026 AI orders target to $9 billion from an earlier estimate of $5 billion.