Story perspectives

Cisco Cuts 4,000 Jobs, Shares Jump 17% on AI Surge

5/14/2026

Summary

Cisco Job Cuts

Cisco will cut fewer than 4,000 jobs, 5% of its 86,200-person workforce, with notices starting May 14, 2026.
Cisco posted Q3 revenue of $15.8 billion and profit of $3.37 billion.
Cisco secured $5.3 billion in AI infrastructure orders and expects $9 billion AI orders this year.
Restructuring will cost up to $1 billion, with $450 million recorded this quarter.
Shares rose over 17% as CEO Chuck Robbins said the cuts free resources for AI, silicon, optics hiring.

Summary

Cisco Unveils Innovations

Cisco unveiled switches that link different quantum computers, expanding its quantum networking push.
Cisco's AI assistant CIRCUIT logged over 8 million employee interactions in one quarter.
Cisco released its Codex tool, built with OpenAI, across its product organization to accelerate development.
Cisco said its adjusted gross margin fell to 66.0% from 68.6% a year earlier, GAAP margin slipped to 63.6% from 65.6%, with the outlook reflecting impacts from current trade tariffs.

History

Historical Context

IBM’s 1993 $8.1 billion loss prompted CEO Lou Gerstner to cut about 20,000 jobs and shift toward services, a turnaround praised by the NYSE. Cisco’s 2026 plan to cut fewer than 4,000 roles while investing $5.3 billion in AI echoes IBM’s historic resource reallocation, illustrating how large tech firms restructure to fund emerging platforms.

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Cisco Job Cuts

Cisco will cut fewer than 4,000 jobs, 5% of its 86,200-person workforce, with notices starting May 14, 2026.
Cisco posted Q3 revenue of $15.8 billion and profit of $3.37 billion.
Cisco secured $5.3 billion in AI infrastructure orders and expects $9 billion AI orders this year.
Restructuring will cost up to $1 billion, with $450 million recorded this quarter.
Shares rose over 17% as CEO Chuck Robbins said the cuts free resources for AI, silicon, optics hiring.

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