capital · May 17, 2026
Cisco Announces 4,000 Job Cuts as Part of $1 Billion AI Restructuring
Share the canonical public link.
Cisco Systems announced on May 14, 2026, that it will cut nearly 4,000 jobs representing less than 5% of its workforce in a broad restructuring aimed at sharpening its focus on artificial intelligence and other high-growth areas. The company reported $15.8 billion in total revenues up 12% year over year and $1.9 billion in AI infrastructure orders from hyperscalers with expectations of $9 billion for the fiscal year. Cisco CFO Mark Patterson stated during the Wednesday earnings call that the restructure is about realigning resources around silicon optics security and AI rather than savings. CEO Chuck Robbins noted that companies winning in the AI era will shift investment toward areas of strongest demand and long-term value creation. Impacted employees receive pro-rated FY26 bonuses and placement support with notifications beginning the day after the announcement.