Cisco announced plans to eliminate approximately 4,000 jobs as part of a broader restructuring effort focused on artificial intelligence and cloud infrastructure expansion.
The announcement came alongside stronger-than-expected quarterly results, with Cisco reporting fiscal third-quarter revenue of $15.84 billion, up 12% year over year. The company also raised its guidance for the current quarter, driven by growing demand for AI-related networking products and data center infrastructure.
Cisco said AI has become a central growth driver as enterprises and cloud providers increase spending on high-speed networking, cybersecurity, and connectivity solutions needed to support large-scale AI workloads.
Management indicated the workforce reductions are intended to streamline operations and redirect investment toward higher-growth AI-focused business segments. Investors responded positively to the company’s outlook, with shares rising sharply following the earnings release.
The restructuring reflects a broader trend across the technology industry, where companies are simultaneously cutting costs and accelerating AI investments. Businesses are increasingly reallocating resources toward infrastructure, automation, and AI deployment while reducing spending in slower-growing areas.
Analysts view Cisco as a potential long-term beneficiary of the AI infrastructure boom, as advanced AI systems require significantly more bandwidth, networking capacity, and secure data center connectivity.
Meanwhile, similar there are similar trends across the industry, with Meta reportedly planning around 8,000 job cuts while sharply increasing AI spending, and Oracle reducing headcount to redirect capital toward AI data center expansion.
