Cisco to Cut About 4,000 Jobs in AI-Focused Restructuring as Orders Surge

Cisco said on Wednesday it would cut nearly 4,000 jobs, as part of a restructuring aimed at shifting investment toward artificial intelligence and related growth areas, and raised its annual revenue forecast after a surge in hyperscaler orders.

Shares of the San Jose, California-based networking equipment maker rose 15% in extended trading.

“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,” CEO Chuck Robbins said in a post on Cisco’s website.

Cisco said it was making strategic investments in silicon, optics, security and employees’ use of AI across the company, as it reduces roles in some areas.

The company has taken $5.3 billion in AI infrastructure orders from hyperscalers so far this fiscal year, and raised its full-year order expectation to $9 billion from $5 billion previously.

It now expects fiscal 2026 revenue in the range of $62.8 billion to $63 billion, compared with its earlier forecast of $61.2 billion to $61.7 billion.

CEO Robbins said the company would reduce its workforce by fewer than 4,000 jobs in the fourth quarter, representing less than 5% of its employee base.

It had about 86,200 employees, as of July 26 last year.

The restructuring plan is expected to cost Cisco up to $1 billion, with about $450 million to be recognized in the fourth quarter and the rest in fiscal 2027.

(Reporting by Juby Babu in Mexico City; Editing by Shinjini Ganguli)

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