Networking technology giant, Cisco is set to reduce its global workforce by nearly 4,000 employees as part of a broader restructuring effort aimed at sharpening its focus on growth areas linked to artificial intelligence (AI). The move places the company among a growing list of technology firms that have announced workforce reductions while repositioning their businesses around AI-led transformation.
The latest workforce reduction will affect less than five per cent of Cisco’s global employee base, which stands at approximately 80,000 people. Employee notifications are expected to begin from 14 May and will be rolled out across different regions according to local regulations. While the company has not disclosed specific functions or teams likely to be impacted, it confirmed that the process will unfold over the coming weeks.
Cisco plans to provide support measures to affected employees, including adjusted bonus payouts, transition assistance and career- support resources. Impacted workers will also receive access to learning and upskilling opportunities through the company’s certification and training platform for a year. Regulatory filings indicate that the restructuring may lead to costs of nearly $1 billion, largely due to severance expenses.
The decision comes despite a strong financial quarter for the company. Cisco recently reported record third-quarter revenue of $15.8 billion, marking a 12 per cent increase compared to the same period last year. Even with strong business performance, the company believes it needs to reorganise its structure and redirect investments toward areas expected to drive long-term growth.
At the same time, Cisco is increasing investments in strategic areas including silicon, optics, cybersecurity and broader AI adoption across internal operations, signalling a shift toward future-focused capabilities.
