Cisco announces 4,000 layoffs and $1 billion restructuring costs to boost AI, silicon, and security investments amid surging AI orders.
Cisco Systems will cut approximately 4,000 jobs, representing nearly 5% of its workforce, as part of a restructuring plan costing up to $1 billion. The move aims to reallocate resources toward artificial intelligence, silicon, optics, and security investments following strong demand for AI infrastructure from hyperscalers.
AI infrastructure orders from hyperscalers reached $1.9 billion in Q3, tripling from $600 million a year earlier, and have already surpassed Cisco’s $5 billion full-year target with one quarter remaining. The company raised its full-year revenue guidance to $62.8-$63 billion and adjusted earnings per share guidance to $4.27-$4.29.
Shares rose 17% in after-hours trading following the announcement, which executives framed as a strategic reallocation rather than a cost-cutting measure. Layoff notifications were set to begin immediately.