Cisco announces record revenue and 4,000 layoffs in the same day
Summary
Cisco reported a record revenue increase of 12% to $15.8 billion in fiscal Q3 2026 but announced layoffs of fewer than 4,000 employees, about 5% of its workforce. The company said the job cuts are part of a restructuring to focus on AI, silicon, optics, and security technologies.Key Facts
- Cisco’s revenue increased 12% year-over-year to $15.8 billion in fiscal Q3 2026.
- The company will lay off fewer than 4,000 employees starting May 14, representing less than 5% of its workforce.
- The layoffs are part of a realignment to focus on AI, silicon chips, optics, and security investments.
- Cisco sold $5.3 billion in AI infrastructure this fiscal year and expects orders to reach $9 billion by year’s end.
- CFO Mark Patterson said the restructuring is not primarily about saving money but reallocating resources.
- Cisco expects to take up to $1 billion in pre-tax charges related to the layoffs across fiscal 2026 and 2027.
- Laid-off workers will receive pro-rated bonuses and one year of free access to Cisco training courses.
- This is the third round of layoffs in the past year, following cuts in February and August 2024 for similar restructuring reasons.
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