Cisco cuts 4,000 jobs to reallocate resources towards AI despite record quarterly revenue
17 Sources
[1]
Cisco cuts nearly 4,000 jobs to spend more on AI, reports 'record quarterly revenue' | TechCrunch
Technology giant Cisco is cutting fewer than 4,000 jobs, or around 5% of its workforce, despite reporting better-than-expected profit and revenue in its fiscal third quarter. The networking equipment maker said it reducing its headcount in order to change its "cost structure" and invest in AI and
[2]
Cisco to cut about 4,000 jobs in AI-focused restructuring as orders surge
May 13 (Reuters) - Cisco (CSCO.O), opens new tab said on Wednesday it would cut nearly 4,000 jobs, as part of a restructuring aimed at shifting investment toward artificial intelligence and related growth areas, and raised its annual revenue forecast after a surge in hyperscaler orders. Shares of
[3]
Cisco CEO says tech is entering a 'networking supercycle' as stock pops 14% on strong AI demand
Cisco CEO Chuck Robbins: There's a networking supercycle that we're entering right now Cisco CEO Chuck Robbins told CNBC on Thursday that skyrocketing demand for artificial intelligence tools and equipment is powering the industry toward a "networking supercycle." Shares jumped 14% and headed for
[4]
From Cisco to Block, more companies are pointing to AI when unveiling job cuts
That's unnerving workers across sectors, with many fearing what the rapid adoption of AI will mean for their job prospects. Even if AI isn't replacing people directly, some businesses have announced reductions as they redirect money to the technology or tout new ways to streamline operations --
[5]
'We are making clear, strategic investments': Cisco cuts 4,000 jobs, even as AI orders surge
* Cisco will be making 4,000 workers redundant very soon * Last quarter the company posted a "record" 12% growth in revenue * Investors seem happy with revenue growth and the future outlook Cisco has confirmed it will be laying off around 4,000 workers, representing 5% of its global headcount,
[6]
Why Cisco is axing a fifth of its workforce even as AI demand ramps up
As CEO Chuck Robbins talked about another strong strong AI-driven quarter for Cisco, up to 4,000 of the firm's staffers, five percent of the total workforce, are about to join the growing ranks of the tech sector's AI-enabled unemployed. Robbins told Cisco employees in a memo that the firm is
[7]
Cisco layoffs today: Tech giant slashes thousands of jobs as CEO touts record revenue and urgent focus on AI
On Wednesday, Cisco Systems announced impressive quarterly earnings alongside nearly 4,000 job cuts. The dichotomy stemmed from the hardware and networking company's embrace of a rapidly growing trend in tech: openly admitting that layoffs are due to AI adoption rather than poor performance. "The
[8]
Rising AI demand helps Cisco to another earnings and revenue beat - SiliconANGLE
Rising AI demand helps Cisco to another earnings and revenue beat Shares of the networking giant Cisco Systems Inc. soared 20% in extended trading today after it reported solid third-quarter earnings and revenue numbers and announced a new round of job cuts. The company said it's going to cut less
[9]
Cisco Lays Off Thousands Despite Strong Earnings. The Reason Will Sound Familiar
Following a strong earnings report, Cisco Systems has announced that it will be laying off nearly 4,000 employees, looking to shift towards AI. The technology conglomerate will join multiple big tech names that have been adopting AI into their infrastructure and restructuring around it. The new
[10]
Cisco Is Cutting Staff to Prioritize AI Investments as Data Center Orders Surge. The Stock is Soaring
Get personalized, AI-powered answers built on 27+ years of trusted expertise. Cisco's stock keeps hitting new highs as AI orders surge. Shares of Cisco (CSCO) were up 15% in recent trading, setting a new record topping yesterday's high, a day after the networking giant posted earnings that beat
[11]
Cisco to cut about 4,000 jobs in AI-focused restructuring as orders surge - The Economic Times
Cisco announced nearly 4,000 job cuts as part of a strategic restructuring to boost investment in AI and growth areas. The networking giant also raised its annual revenue forecast, driven by a significant surge in hyperscaler orders for AI infrastructure, leading to a substantial stock
[12]
Cisco Lays Off 4,000 Employees In AI Overhaul, CFO Mark Patterson Says Move Not 'Savings' Driven But Abou
Cisco Systems (NASDAQ:CSCO) is cutting nearly 4,000 jobs as part of a sweeping restructuring effort designed to accelerate its push into artificial intelligence, security, silicon and networking infrastructure. Cisco Restructuring Focuses On AI, Security And Silicon On Wednesday, the networking
[13]
Cisco To Cut Nearly 4,000 Jobs In Restructuring Push Around AI, Security
The networking giant announced thousands of layoffs as part of a restructuring move aimed at helping shift resources to continue its investments in strategic areas as advanced AI, security, and quantum networking technology, the company said during its third fiscal quarter 2026 financial analyst
[14]
Cisco jumps on strong revenue forecast, AI push with job cuts
Cisco Systems shares jumped 19 per cent in premarket trading on Thursday, a day after it outlined nearly 4,000 job cuts and raised revenue forecast on strong hyperscaler demand, boosting investor confidence in its AI infrastructure push. If the gains hold, the networking gear maker's stock would
[15]
Cisco jumps on strong revenue forecast, AI push with job cuts
May 14 - Cisco Systems shares jumped 19% in premarket trading on Thursday, a day after it outlined nearly 4,000 job cuts and raised revenue forecast on strong hyperscaler demand, boosting investor confidence in its AI infrastructure push. If the gains hold, the networking gear maker's stock would
[16]
Cisco buoyed by surge in AI-related orders
Cisco reported quarterly results and guidance that topped Wall Street expectations, driven by a sharp acceleration in orders for artificial intelligence infrastructure. The US group posted revenue of $15.84bn for the quarter ended April 25, compared with $15.56bn expected by analysts according to
[17]
Cisco to Cut Jobs in Shift to Capture More AI Demand
Cisco Systems is cutting jobs as part of a shift toward high-growth parts of its business, including AI infrastructure. The networking company said Wednesday that it is launching a restructuring that will cost up to $1 billion in severance, one-time termination benefits and other costs. The plan
Share
Copy Link
Cisco is laying off nearly 4,000 employees—about 5% of its workforce—despite posting record quarterly revenue and strong financial results. CEO Chuck Robbins says the cuts will fund strategic investments in AI, silicon, optics, and cybersecurity as the company shifts toward high-growth areas and responds to surging demand from hyperscalers.
Cisco Announces Workforce Reduction Amid Record Financial Performance
Cisco is cutting nearly 4,000 jobs, representing approximately 5% of its workforce, despite reporting record quarterly revenue and better-than-expected profit in its fiscal third quarter
1
. The networking equipment maker confirmed it will reduce its headcount to change its cost structure and fund strategic investments in AI, cybersecurity, silicon, and optics2
. This AI-focused restructuring arrives as tech companies prioritizing AI spending increasingly cite the technology as justification for workforce reductions, even while posting strong financial results1
.
Source: Market Screener
Surging AI Infrastructure Orders Drive Revenue Forecast Increase
The company has secured $5.3 billion in AI infrastructure orders from hyperscalers so far this fiscal year, prompting Cisco to raise its full-year order expectation from $5 billion to $9 billion
2
. This dramatic surge in demand led Cisco to increase its annual revenue forecast to a range of $62.8 billion to $63 billion, up from its earlier projection of $61.2 billion to $61.7 billion2
. The company posted $15.84 billion in revenue for the quarter, reflecting 12% year-over-year growth, with networking orders growing by more than 50% and data center switching orders rising over 40%5
.CEO Declares Entry Into Networking Supercycle
CEO Chuck Robbins told CNBC that skyrocketing demand for AI tools and equipment is powering the industry toward a "networking supercycle"
3
. In a blog post, Robbins emphasized that "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 is strongest"2
. The restructuring plan is expected to cost Cisco up to $1 billion, with approximately $450 million to be recognized in the fourth quarter and the remainder in fiscal 20272
.
Source: SiliconANGLE
Investor Confidence Rises Despite Workforce Cuts
Shares of Cisco jumped 14-15% in extended trading following the announcement, heading for their best day in more than two decades
3
. Investor confidence appears driven by the company's ability to capitalize on AI infrastructure demand and its commitment to reallocate resources towards AI and other high-growth areas5
. Robbins acknowledged the company was making investments "in our employees' use of AI across the company" while touting "double-digit growth"1
.Related Stories
Growing Trend of AI-Justified Layoffs Across Tech Sector
Cisco's decision follows a pattern of tech companies increasingly citing AI priorities as justification for job cuts. Cloudflare and General Motors have both laid off staff in recent days despite reporting strong financial results
1
. Other companies including Block, Pinterest, Dow Inc., and Lufthansa Group have announced thousands of layoffs while pointing to AI adoption and automation4
. Meta, Microsoft, and Amazon are also cutting thousands of jobs while investing billions toward AI infrastructure4
. This year alone, approximately 108,000 tech workers have been affected by layoffs5
.Cybersecurity Investments Address Ongoing Vulnerabilities
Cisco said it plans to invest more in cybersecurity as the company continues to contend with security vulnerabilities in its routers and firewalls that have allowed hackers to break into corporate customer networks, including the U.S. government
1
. The company also experienced a data breach last year in which customers' personal information was affected1
. Robbins stated the company will continue hiring in areas including AI infrastructure, silicon development, optics and fiber networking, and cybersecurity, even as 5% of its workforce faces layoffs5
. The CEO also noted that Cisco's placement services have achieved a 75% success rate in helping affected employees find new roles, whether internal or external5
.
Source: AP
References
Summarized by
Navi
[1]
[3]
Related Stories
Cisco Announces Layoffs Amid AI-Driven Restructuring
17 Aug 2024
Cisco Raises Revenue Forecast as Hyperscaler AI Demand Drives $2.1B in Infrastructure Orders
11 Feb 2026•Business and Economy
Cisco Sees Strong AI Momentum, Expects Over $1 Billion in AI Orders for Fiscal 2025
14 Nov 2024•Business and Economy
Recent Highlights
1
OpenAI Pauses AI Model Training After Agent Hacks Australian Government Website
Technology
2
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
3
AI Researchers Sound Alarm: Companies Racing Toward Self-Improving Systems Despite Existential Risks
Policy and Regulation
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
