Cisco announced plans on May 13, 2026, to eliminate fewer than 4,000 jobs as it reported fiscal third-quarter revenue of $15.8 billion, which the company described as a quarterly record. Revenue rose 12 percent from a year earlier.
CEO Chuck Robbins said the workforce reductions would take place in the fourth quarter of fiscal 2026 and represent less than 5 percent of Cisco’s total employee base. In a message to employees, he said most notifications would begin on May 14 and continue globally in accordance with applicable local laws and regulations.
Investment priorities and restructuring costs
Robbins said Cisco was shifting investment toward areas where it sees stronger demand and long-term value. He identified silicon, optics, security and employees’ use of AI across the company as priorities, linking the workforce changes to decisions about investment, organization and costs.
Cisco estimated that the restructuring would result in up to $1 billion in pretax charges. The company expected to recognize approximately $450 million in the fourth quarter of fiscal 2026 and the remainder during fiscal 2027.
Higher AI infrastructure forecasts
Cisco’s third-quarter results covered the period ended April 25, 2026. The company reported $5.3 billion in AI infrastructure orders from hyperscale customers for the fiscal year to date. That figure represented orders received, rather than recognized revenue.
Cisco raised its forecast for fiscal 2026 AI infrastructure orders from those customers to $9 billion, from $5 billion previously. It also increased its corresponding revenue forecast to $4 billion, from $3 billion. These forecasts reflected Cisco’s expectations for its own business.
Support for affected employees
Robbins said affected employees would receive prorated fiscal 2026 bonus payments and assistance finding internal or external opportunities through Cisco’s placement services. He also said they would receive one year of access to Cisco U courses and certifications covering subjects including AI, security and networking.
The planned reductions follow other Cisco layoff rounds announced in 2024.
