Cisco to cut under 4,000 jobs amid AI-led restructuring
New Delhi, May 14
Cisco, a global technology conglomerate, has announced plans to cut fewer than 4,000 jobs globally as part of a restructuring exercise aimed at sharpening its focus on artificial intelligence and other high-growth technology areas.
The layoffs that will affect less than 5 per cent of the company's global workforce were disclosed by CEO Chuck Robbins and the Executive Leadership Team in an internal memo issued alongside the company's third-quarter FY26 earnings.
"The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest," Robbins said in the memo.
The company said most affected employees will begin receiving notifications from May 14, with the process being carried out globally in accordance with local laws and regulations.
Moreover, the company added that impacted employees would receive pro-rated FY26 bonuses, severance support and access to the company's placement services programme, which it said had helped nearly 75 per cent of participants secure new roles.
The networking giant noted that employees affected by the restructuring would be given one year of access to Cisco U courses and certifications covering AI, cybersecurity, networking and related technologies.
While reducing headcount in certain divisions, Cisco said it would continue making 'clear, strategic investments' in areas such as silicon, optics, security and the broader use of AI across its operations.
"These investments are building from a position of strength and focusing on the technologies and businesses that will accelerate our growth," the memo noted.
The restructuring comes even as Cisco raised its business outlook, reflecting growing enterprise spending on AI-linked infrastructure and services.
Moreover, Cisco has reported record quarterly revenue of $15.8 billion, up 12 per cent year-on-year.
— IANS
Reader Comments
This is what happens when AI hype takes over. Cisco had a good run, but now they're chasing the same bandwagon as everyone else. The severance package sounds decent though - one year of Cisco U courses and bonuses? That's more than many Indian companies would offer. But still, losing a job is never easy.
My cousin works at Cisco Bangalore - he's been sweating bullets since the news broke. The irony is the company is investing in AI, networking, security etc. while cutting jobs in those very areas? Make it make sense 🙄 Hope the placement services deliver, because the job market is already tight.
Record revenue of $15.8B but still cutting jobs - this is the reality of corporate India and the world now. AI is eating jobs faster than it's creating them in some sectors. Cisco should have handled this better, maybe through natural attrition or retraining. But hey, shareholders must be happy.
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