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The company said the workforce changes form part of a broader restructuring plan to support investments in growth areas including AI, silicon, optics, and security, with up to US$1bn in pre-tax charges expected.
Technology conglomerate Cisco announced a restructuring plan aimed at supporting continued investment in areas including AI, silicon, optics, and security, as the company responds to evolving technology demand.
The restructuring was disclosed on 13 May 2026 alongside Cisco’s third-quarter fiscal 2026 earnings results.
According to the company, and in connection to the restructuring plan, "Cisco currently estimates that it will recognise pre-tax charges of up to US$1bn consisting of severance and other one-time termination benefits, and other costs."
In addition, approximately US$450mn of the charges are expected to be recognised in the fourth quarter of fiscal 2026, with the remaining amount anticipated during fiscal 2027.
In a message published on Cisco’s corporate blog, which was also shared in an email with Cisco employees, CEO Chuck Robbins said the company is continuing to adjust its investments in line with long-term business priorities and customer demand.
He noted that the restructuring, which will result in fewer than 4,000 jobs reduced in Q4, representing less than 5% of the total employee base, is intended to help Cisco direct resources toward areas where it sees future growth opportunities.
According to Robbins, most notifications have begun with effect from 14 May and will continue globally in alignment with applicable local laws and regulations.
"For employees whose roles are impacted, leaders will share details directly – including timing, available resources, support, and benefits in each country. This will include pro-rated payment of FY26 bonuses to impacted employees."
He also shared that affected employees will receive support through internal and external job placement services, as well as continued access to learning and certification programmes covering areas such as AI, security, and networking for up to one year.
Elaborating on the investments, Robbins said: "These investments are building from a position of strength – and focusing on the technologies and businesses that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future."
Concluding his message, Robbins thanked the affected employees for their contribution, dedication and the mark they had made on the company.
He also expressed his gratitude and commitment to handling this transition with "the care, clarity, and respect that defines our culture."
Robbins said the company would continue engaging employees on the changes through internal discussions and briefings, adding that Cisco remained focused on its long-term growth priorities and business objectives for fiscal 2027 and beyond.
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