Cisco announces 4,000 job cuts after posting record

💼🤖 Cisco has announced plans to cut around 4,000 jobs as part of a major restructuring focused on expanding its artificial intelligence strategy and accelerating investments in next-generation technologies. CEO Chuck Robbins said the company is reshaping its workforce to prioritize areas driving long-term growth in the AI era, including silicon, optics, cybersecurity, cloud infrastructure, and AI-powered operations. The layoffs, which represent less than 5% of Cisco’s global workforce, come despite the company reporting record quarterly revenue of $15.8 billion — up 12% year-over-year. Cisco also revealed that AI-related infrastructure orders have surged far beyond expectations, with demand from major cloud and internet companies rapidly increasing as businesses race to build large-scale AI data centers.

The company said it has already secured $5.3 billion in AI infrastructure orders and now expects that figure to reach nearly $9 billion by the end of the fiscal year. Cisco warned that the restructuring could cost up to $1 billion before taxes, primarily tied to severance and transition expenses. The move reflects a wider transformation happening across the technology industry, where companies are increasingly reducing traditional roles while redirecting resources toward AI development, automation, and advanced cloud systems. Similar workforce reductions have recently been announced by companies including LinkedIn and GitLab as the tech sector rapidly reorganizes around artificial intelligence and future digital infrastructure. 🚀📉