Cisco has announced plans to cut up to 4,000 jobs globally as the company accelerates the integration of artificial intelligence across multiple business functions.
In an internal email shared with employees, Cisco Chair and CEO Chuck Robbins said the workforce reduction will begin from May 14 and will impact less than 5% of the company’s total employee base.
“We are making changes today that will result in the reduction of our overall workforce in Q4 by fewer than 4,000 jobs, representing less than 5% of our total employee base,” Robbins wrote.
As of July 26, 2025, Cisco had around 86,200 employees globally. The company said affected employees will receive support resources, including pro-rated FY26 bonus payments.
While reducing roles in some areas, Cisco said it is continuing strategic investments in silicon, optics, security, and AI adoption across the organisation.
The announcement comes shortly after Cisco reported a 12% year-on-year increase in revenue, reaching a record $15.8 billion. The company also revealed that it secured $5.3 billion in AI infrastructure orders from hyperscalers during the current fiscal year and has now raised its full-year estimate to $9 billion from the earlier target of $5 billion.
Cisco has benefited from rising demand for high-speed networking systems required to connect AI-focused data centres. The company reported that networking product orders grew more than 50% in the third quarter, while data-centre switching orders increased by over 40%.
Cisco finance chief Mark Patterson said the company expects at least $6 billion in AI hyperscale-related revenue by fiscal 2027.
Meanwhile, Cloudflare also announced plans to cut 1,100 jobs globally as it integrates agentic AI into several business functions to improve operational efficiency.
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