Cisco delivered mixed news on Wednesday: record quarterly revenue alongside a plan to lay off 4,000 employees.
The layoffs are part of a strategic realignment. CFO Mark Patterson told investors that the move is "not savings-driven." Instead, the company is redirecting resources toward silicon, optics, security, and artificial intelligence.
CEO Chuck Robbins said the cuts come from a "position of strength" and are meant to accelerate growth and innovation. The company expects to recognize up to $1 billion in pre-tax charges related to the layoffs, with the bulk hitting in fiscal 2027.
Affected workers will receive prorated fiscal 2026 bonuses. Cisco is also offering job placement services-which Robbins noted have helped 75 percent of past participants find new roles-along with one year of free access to Cisco U courses and certifications.
This marks the third round of cuts in just over two years. Cisco eliminated 4,245 jobs in February 2024 and roughly 6,000 positions in August 2024, both previously attributed to similar restructuring goals.