Cisco workforce reductions

Source: Hacker News

Announcement

Today we announced our Q3 FY26 earnings with record revenue of $15.8 billion, up 12 % year over year, and double‑digit top‑ and bottom‑line growth. The ELT and I could not be prouder of the growth you have all delivered for Cisco.

These results are even more impressive given the complex environment we’re operating in—a rapidly changing market, intensifying competition, and a global shortage of components critical to support our portfolio and the AI build‑out from our customers.

Strategic Focus

The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long‑term value creation are strongest. I’m confident Cisco will be one of those winners. This means making hard decisions about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.

Workforce Reduction

• We are reducing our overall workforce in Q4 by fewer than 4,000 jobs, representing less than 5 % of our total employee base.
• Most notifications will begin on May 14 and continue globally in alignment with applicable local laws and regulations.
• Leaders will share details directly with impacted employees, including timing, available resources, support, and benefits in each country.
• Impacted employees will receive pro‑rated payment of FY26 bonuses.

Support for Affected Employees

• Cisco’s placement services will assist in finding new opportunities (internal or external). The program has seen 75 % of participants discover their next role.
• We are committed to continued personalized learning and will provide one year of access to all Cisco U courses and certifications, covering AI, Security, Networking, and more.

Continued Investments

While we are reducing roles in some areas, we are making clear, strategic investments—particularly in silicon, optics, security, and AI enablement across the company. These investments build from a position of strength and focus on the technologies and businesses that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future.

Message to Employees

• To those leaving Cisco: thank you for your contribution, dedication, and the mark you have made on this company. We are deeply grateful and are committed to handling this transition with the care, clarity, and respect that defines our culture.
• To those who will continue here: we will discuss these changes and answer questions at the Cisco Beat on May 21 at 8 a.m. PT.

We have important, impactful, and consequential work ahead. Your focus, resilience, and leadership are vital to our growth and relevance in FY27 and beyond.

Chuck and the Executive Leadership Team