New Delhi, May 14(CXO Media): Cisco is cutting nearly 4,000 jobs even as the company reports stronger revenue and growing demand for artificial intelligence infrastructure.
The company said the layoffs are part of a restructuring exercise aimed at shifting investments toward artificial intelligence, cybersecurity, silicon, optics, and networking businesses that are seeing faster growth. The workforce reduction, expected in the fourth quarter, will affect less than 5% of Cisco’s global employee base.
Why Cisco Is Cutting Jobs Despite Strong Business
The move comes at a time when Cisco’s business is improving. The company reported third-quarter revenue of $15.84 billion, higher than market estimates, while demand for AI-linked networking products continued to grow.
Cisco said orders tied to AI infrastructure from hyperscaler customers have reached $5.3 billion so far this fiscal year. The company has now raised its annual AI orders forecast to $9 billion, up from an earlier estimate of $5 billion.
The latest job cuts show how large technology firms are reshaping teams as spending shifts toward AI-led businesses. Companies across the sector are reducing roles in slower-growth divisions while increasing investments in cloud, data centres, automation and enterprise AI.
Cisco Raises Revenue Forecast As AI Demand Grows
Cisco also raised its fiscal 2026 revenue guidance to between $62.8 billion and $63 billion, compared to its earlier forecast of $61.2 billion to $61.7 billion. Networking product orders rose more than 50% in the third quarter, while demand for data-centre switching products increased over 40%, reflecting growing investments in AI infrastructure.
Chief Executive Officer Chuck Robbins said the company is reallocating investments toward areas expected to create long-term demand and value. Cisco added that the restructuring could cost up to $1 billion, with a major portion expected to be recorded in the current quarter.
Following the announcement, shares of Cisco Systems rose more than 15% in extended trading, as investors responded positively to the company’s stronger outlook and expanding AI business.
