Cisco said on May 14 it will cut fewer than 4,000 jobs in its fourth quarter, a move that will affect less than 5 percent of its total workforce. The announcement came the same day the networking giant reported record Q3 FY26 revenue of $15.8 billion, up 12 percent from a year earlier.
Chief Executive Chuck Robbins said the company is making changes that will reduce its overall workforce and that most notifications will begin on May 14, with notices continuing globally in line with local laws and regulations. Cisco said impacted employees will receive pro-rated FY26 bonuses, one year of access to Cisco U courses and certifications, and help through its placement services program, which it said has helped 75 percent of participants find their next role.
The layoffs land as Cisco says it is operating in a rapidly changing market marked by intensifying competition, a global shortage of components critical to its portfolio, and customer demand tied to the AI buildout. The company said it is shifting investment toward areas where it sees the strongest demand and long-term value creation, including silicon, optics, security and the use of AI by employees across the company.
Robbins said the changes were shared with employees in an email on May 14, and Cisco said it will discuss the move and take questions at Cisco Beat on May 21 at 8 a.m. PT. For employees, the next few days will determine how quickly the cuts reach each region and how much of the company’s promised support translates into a smoother landing.
