Cisco to Cut Nearly 4,000 Jobs in Q4 Amid AI Shift

Networking company Cisco will cut nearly 4,000 jobs in the fourth quarter of FY26 as it shifts investments towards artificial intelligence, security, silicon, and optics, the company’s CEO, Chuck Robbins, wrote in an email to employees that was posted on the company’s blog. 

The layoffs will affect less than 5% of Cisco’s global workforce, with notifications beginning on May 14 in line with local laws and regulations.

The announcement came alongside Cisco’s third-quarter (January 25 to April 25, 2026) earnings, where the company reported record revenue of $15.8 billion, up 12% year-on-year. 

Robbins said the company is restructuring amid intensifying competition and customers accelerating AI infrastructure spending.

“We are making changes today that will result in the reduction of our overall workforce in Q4 by fewer than 4,000 jobs,” Robbins wrote in the email to employees. He added that the company must “continuously shift investment toward the areas where demand and long-term value creation are strongest.”

Cisco said it will continue hiring and investing in areas tied to future growth, especially AI-related technologies. The company identified silicon, optics, security and AI adoption across operations as priority areas for investment.

Robbins said the company’s current performance came despite “a rapidly changing market, with intensifying competition, and a global shortage of components critical to support our portfolio and the AI buildout from our customers.”

The company also outlined support measures for affected employees. 

Cisco said impacted workers would receive pro-rated FY26 bonuses, access to placement services and one year of access to Cisco U courses and certifications. According to the company, its placement programme has helped 75% of participants secure new roles.

Cisco said managers would directly communicate details regarding timelines, benefits and support resources to affected employees in each country. The company plans to discuss the changes further during its Cisco Beat meeting on May 21.

“To those leaving Cisco, thank you for your contribution, your dedication, and the mark you have made on this company,” Robbins wrote. “We are deeply grateful and are committed to handling this transition with the care, clarity, and respect that defines our culture.”