Cisco Cuts 4,000 Jobs While Reporting Record Revenue, Doubling Down on AI
Cisco announced it will eliminate nearly 4,000 positions as part of a major restructuring aimed at shifting billions toward AI infrastructure, even as the networking giant reported its highest-ever quarterly revenue of $15.8 billion. The move reflects how tech companies are simultaneously investing heavily in AI while cutting traditional workforce costs.
Record Results, Major Cuts
Cisco announced the cuts the same day it reported its highest-ever quarterly revenue: $15.8 billion, up 12% from a year earlier. Cisco Systems said it will cut nearly 4,000 jobs as part of a restructuring aimed at shifting more investment into AI infrastructure, silicon, optics, and security. The networking giant also raised its annual revenue forecast after reporting a surge in hyperscaler demand tied to AI data centers.
AI Demand Driver
Networking product orders rose more than 50% year over year in the quarter, and data center switching orders grew more than 40%, according to the company. From networking and cloud computing to energy, semiconductors, cybersecurity, and enterprise software, AI infrastructure spending is emerging as the dominant force driving the global tech economy in 2026. Companies are reallocating budgets, restructuring teams, building new data centers, and redesigning products around AI workloads.
Industry Pattern
The restructuring follows several rounds of tech layoffs in the Bay Area and across the industry as companies shift spending toward AI infrastructure and automation.