【AI前沿】Cisco announces record revenue and 4,000 layoffs in the same day

Job lossesCisco announces record revenue and 4,000 layoffs in the same dayLayoffs are “not a savings-driven restructure,” CFO says.Scharon Harding–May 14, 2026 12:47 pm|52The Cisco Systems GmbH headquarters building in Garching, Germany.Credit:

      Matthias Balk/picture alliance via Getty ImagesThe Cisco Systems GmbH headquarters building in Garching, Germany.Credit:

      Matthias Balk/picture alliance via Getty ImagesText
    settingsStory textSizeSmallStandardLargeWidth*StandardWideLinksStandardOrange* Subscribers onlyLearn moreMinimize to navFollowing a quarter in which his company delivered record revenue, Cisco CEO Chuck Robbins announced that the company’s latest round of layoffs begins today.In ablog postyesterday, Robbins was quick to boast that Cisco’s fiscal Q3 2026 earnings saw revenue increase 12 percent year-over-year to $15.8 billion. He told employees that he and the rest of Cisco’s executive leadership team “could not be prouder of the growth you have all delivered for Cisco.”But that pride could apparently not save the company’s successful employees from unemployment.“We are making changes today that will result in the reduction of our overall workforce in Q4 by fewer than 4,000 jobs, representing less than 5 percent of our total employee base,” he wrote. “Most notifications will begin on May 14 and continue globally in alignment with applicable local laws and regulations.”As with manylayoffs at tech companiesrecently, Cisco’s job losses are attributed to the growth of AI. Robbins’ blog noted that companies that “will win in the AI era” need to demonstrate the “focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest.”“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 chief said.Cisco plans to turn the layoffs into investments in “silicon, optics, security, and in our employees’ use of AI across the company,” according to Robbins.In its earnings report released on Wednesday, Cisco said it sold $5.3 billion in AI infrastructure from hyperscalers so far this fiscal year. It is now expecting orders for the fiscal year to reach $9 billion, up from $5 billion, and revenue to reach $4 billion instead of $3 billion.During a call with investors on Wednesday night, Cisco executives discussed the layoffs further, with CFO Mark Patterson saying, “This was really not a savings-driven restructure,” according to atranscriptof the call.“Things are moving incredibly fast right now,” he said. “And this is more realigning from an already strong base, as you’re seeing in our financials, but really realigning resources around silicon, optics, security, and AI. And so being able to move fast, we don’t always have the exact resources that we need going forward in the right places. And so that’s really what this is about versus savings.”Due to the layoffs, Cisco expects to “recognize up to $1 billion of pre-tax charges with $450 million to be recognized in the Q4 FY ’26 and the remainder during FY ’27,” Patterson added.“These [layoffs] are building from a position of strength and focusing on the technologies that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future,” Robbins said on the call.Bonuses and training for laid-off workersRobbins’ blog post said that affected workers will receive “pro-rated payment” of fiscal 2026 bonuses. The company also says it will offer services to help laid-off employees find new jobs.“We will provide support in finding new opportunities, whether internal or external, through Cisco’s placement services—a program that has seen 75 percent of participants discover their next role,” Robbins said. “We are also committed to continued personalized learning and will provide one year of access to all Cisco U courses and certifications, covering AI, security, networking, and more.”This round of layoffs follows the dismissal of 4,245 employees, or 5 percent of the workforce at the time,in February 2024, and about 6,000 people, or about 7 percent of the workforce, in August 2024. Cisco also attributed the latter layoffs to the need to restructure around AI and security,The Registerreported at the time.Scharon HardingSenior Technology ReporterScharon HardingSenior Technology ReporterScharon is a Senior Technology Reporter at Ars Technica writing news, reviews, and analysis on consumer gadgets and services. She's been reporting on technology for over 10 years, with bylines at Tom’s Hardware, Channelnomics, and CRN UK.52 Comments