Cisco to cut 4,000 jobs and boost AI infrastructure orders to $5.3bn
Cisco plans to cut 4,000 jobs, about 5% of its workforce, in Q4 FY26 while paying pro-rated bonuses and offering placement services and training. Q3 FY26 revenue rose 12% to $15.8bn, net income jumped 35% to $3.4bn, and AI infrastructure orders reached $5.3bn year-to-date.
1. Workforce Reduction and Support
Cisco will eliminate up to 4,000 roles, about 5% of its workforce, in Q4 FY26. Impacted employees will receive pro-rated FY26 bonuses, placement services targeting 75% reemployment success, and one year of access to Cisco U courses.
2. Q3 FY26 Financial Results
Revenue climbed 12% year-over-year to $15.8bn, net income rose 35% to $3.4bn, and GAAP EPS increased 37% to $0.85. On a non-GAAP basis, net income reached $4.2bn, up 10%, with EPS at $1.06.
3. Orders and Product Demand Growth
Total product orders grew 35%, excluding hyperscalers by 19%, while networking orders rose over 50%. Data centre switching orders increased 40%, and campus networking refresh orders were up by more than 25%.
4. Strategic Shift to AI and Security
Leadership linked the restructuring to intensifying competition and component shortages, reprioritising spending toward AI and security offerings. AI infrastructure orders reached $5.3bn year-to-date as its next-generation portfolio ramps faster than prior launches.