Cisco to Cut Nearly 4,000 Jobs Amid AI-Focused Restructuring

Cisco is set to reduce its global workforce by nearly 4,000 employees as part of a restructuring initiative aimed at increasing focus on artificial intelligence and other strategic technology areas.
The planned workforce reduction will impact less than 5% of the company’s global employee base of around 80,000 people. According to reports, employee notifications are expected to begin from 14 May and will be implemented across regions in line with local labour regulations.
While Cisco has not publicly identified specific teams or business units that may be affected, the company said the restructuring process will continue over the coming weeks.
The company also said affected employees will receive transition support, including severance-related benefits, adjusted bonus payouts and career assistance resources. Workers impacted by the layoffs will reportedly continue to have access to Cisco’s training and certification platform for up to one year.
Regulatory filings indicate the restructuring could result in charges approaching $1 billion, primarily linked to severance and related workforce costs.
The move comes despite strong recent financial performance. Cisco recently reported third-quarter revenue of $15.8 billion, representing a 12% increase compared with the same period last year.
The company said it is continuing to increase investments in areas including silicon, optics, cybersecurity and AI-enabled operations as part of its long-term growth strategy.
The development places Cisco among several global technology companies that have announced workforce restructuring while increasing investments in AI-driven transformation initiatives.

​