As part of a reorganization effort aimed at better concentrating on artificial intelligence (AI) and other high-growth technology sectors, Cisco, a multinational technology giant, has announced intentions to reduce its worldwide workforce on elliminating 4,000 employees.
In an internal memo released in conjunction with the company’s third-quarter FY26 results, CEO Chuck Robbins and the Executive Leadership Team announced the layoffs, which will impact less than 5% of the company’s workforce worldwide.
In the AI age, Robbins stated in the memo, the winning firms will be those that have focus, urgency, and the discipline to consistently reallocate investment to the areas where demand and long-term value creation are greatest.
According to the firm, the majority of impacted employees will start getting notifications from May 14, and the process will be conducted in accordance with local legislation throughout the world.
Furthermore, the firm stated that affected workers would have access to its placement services program, which it claimed had assisted about 75% of its users in finding new employment, as well as pro-rated FY26 incentives and severance assistance.
The networking behemoth stated that workers impacted by the reorganization will have a year’s worth of access to Cisco U courses and certifications in AI, cybersecurity, networking, and other related technologies.
In addition to cutting workforce in certain sectors, Cisco stated it would keep making “clear, strategic investments” in fields like silicon, optics, security, and the wider adoption of AI throughout its business.
According to the note, these investments are being made from a position of strength and are concentrating on the technologies and industries that will drive our expansion.
The restructuring occurs despite Cisco’s increased business forecast, which is a sign that corporate investment in AI-related infrastructure and services is rising.
In addition, Cisco has announced a record quarterly revenue of $15. 8 billion, a 12% increase year over year.