SAN JOSE, Calif. — Cisco announced another round of layoffs on Wednesday, as the company announced a quarter that saw record revenues and billions of dollars in profit.
In a memo written by company CEO Chuck Robbins that was published on Wednesday, the company said it would be eliminating “fewer than 4,000 jobs,” an amount that is less than 5% of its workforce.
Employees will be notified beginning Thursday and the company will assist laid-off employees in “finding new opportunities,” Robbins added.
In its third quarter report, Cisco said it had record revenues of $15.8 billion, according to SFGate. Year-over-year revenue growth reached 12%, rising from $14.15 billion in the same quarter last year, Fox Business reported.
Despite the high profits, Robbins said Cisco will shift more of its investments toward artificial intelligence, the media outlet reported.
“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.”
The restructuring for the network-equipment company is expected to cost up to $1 billion in severance, one-time termination benefits and other expenses, The Wall Street Journal reported. The numbers were revealed in a filing with the U.S. Securities and Exchange Commission.
The San Jose, California-based company took $1.9 billion in AI infrastructure orders during its fiscal third quarter, which ended on April 25, according to the newspaper.
Year-to-date orders from hyperscalers have already exceeded the $5 billion target Cisco set for all of fiscal 2026, Robbins said.
Cisco has not said what positions will be eliminated, SFGate reported.
California’s Employment Development Department told the media outlet that it has yet to receive a WARN (Worker Adjustment and Retraining Notification) filing from Cisco as of Wednesday. The document is generally required by the state in the event of mass layoffs.