Cisco is cutting “fewer than 4,000 jobs” as the networking giant restructures its business to focus more heavily on artificial intelligence, according to a memo from CEO Chuck Robbins published Wednesday.
The layoffs, which affect less than 5% of Cisco’s workforce, come as the company reported stronger-than-expected quarterly results and raised its sales forecast on growing demand for AI infrastructure.
In a regulatory filing on Wednesday, Cisco said the restructuring is expected to cost up to $1 billion, largely due to severance expenses. The company said it expects to record about $450 million of those charges in the current quarter, with the remaining costs carrying into fiscal 2027.
The company’s stock was up more than 17% in after-hours trading.
Cisco joins a growing list of tech companies that have tied layoffs to AI-related efficiencies and broader organizational changes.
In the memo, Robbins said Cisco is shifting investments toward areas “where demand and long-term value creation are strongest,” including AI chips, fiber optics, and security.
The company said it plans to continue hiring in strategic areas while eliminating some roles as part of its AI-related restructuring.
Read the full memo below:
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