"According to a memo from CEO Chuck Robbins that was published on Wednesday, the company is slashing "fewer than 4,000 jobs," which amounts to less than 5% of its workforce. Employees will be notified starting Thursday, Robbins said, and the company will assist laid-off employees in "finding new opportunities.""
"Though the company reported a record revenue of $15.8 billion in its latest third quarter report, Robbins said it is shifting more of its investments toward artificial intelligence. "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 are strongest. I'm confident Cisco will be one of those winners," Robbins wrote."
""This means making hard decisions - about where we invest, how we're organized, and how our cost structure reflects the opportunity in front of us." Cisco's restructuring plan, which includes severance and termination benefits, is expected to cost the company $1 billion, according to a U.S. Securities and Exchange Commission filing. The cost will be divided up between roughly $450 million in the fourth quarter of the 2026 fiscal year and the rest in 2027, the filing shows."
"Cisco, which is based in San Jose, did not disclose which positions will be cut. California's Employment Development Department told SFGATE that it has not received a WARN filing from Cisco as of Wednesday. The document is generally required by the state in the event of mass layoffs. This week's layoffs mark a continuing pattern at Cisco, with the company cutting jobs on the heels of blockbuster revenue reports."
Cisco announced layoffs affecting fewer than 4,000 jobs, representing less than 5% of its workforce. Employees are scheduled to be notified starting Thursday, and the company will provide assistance to laid-off employees in finding new opportunities. The company reported record revenue of $15.8 billion in its latest third quarter results and billions of dollars in profit. CEO Chuck Robbins said Cisco is shifting more investment toward artificial intelligence and will make hard decisions about investments, organization, and cost structure. The restructuring plan includes severance and termination benefits and is expected to cost about $1 billion, with costs split between fiscal 2026 and 2027. Cisco did not specify which positions will be cut, and no WARN filing had been received as of Wednesday.
#cisco #mass-layoffs #artificial-intelligence-investment #workforce-restructuring #severance-and-termination-benefits
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