Cisco Restructures, Cuts Jobs for AI

Cisco announced a major restructuring plan, including job cuts of nearly 4,000 employees, representing less than 5% of its global workforce. This move is part of a strategic shift to reallocate investments towards artificial intelligence (AI), cybersecurity, silicon, and optics. The company also reported record quarterly revenue of $15.84 billion and raised its fiscal 2026 revenue forecast to between $62.8 billion and $63 billion, driven by strong demand for AI infrastructure from hyperscalers, with orders climbing to $5.3 billion this fiscal year. CEO Chuck Robbins emphasized the importance of focus and discipline in investment for success in the AI era. The restructuring is expected to cost up to $1 billion, with most charges recognized in fiscal 2026 and 2027. Affected employees will receive severance and support.