en.Wedoany.com Reported - On May 14, U.S.-based Cisco announced it will cut nearly 4,000 positions globally, representing less than 5% of its total workforce. This workforce adjustment will free up resources to concentrate on high-growth areas such as artificial intelligence, silicon photonics, and security, in response to the rapidly increasing demand for AI infrastructure.
Cisco CEO Chuck Robbins announced the decision in an internal email to all employees. The email indicated that most layoff notifications began on May 14 and will proceed in an orderly manner in compliance with local laws and regulations across global markets. As of July 26, 2025, Cisco's total workforce stood at approximately 86,200 employees. The company will provide transition support for affected employees, including prorated bonuses for the 2026 fiscal year, to help them through the transition. In the email, Robbins emphasized that while streamlining certain positions, the company is clearly increasing strategic investments in key areas.
In a blog post published subsequently, Robbins further pointed out that companies that can win in the AI era must possess focus, urgency, and discipline, continuously shifting investments toward areas with the strongest demand and the greatest concentration of long-term value creation. The investment priorities he listed include silicon chips, optics, cybersecurity, and the deep application of AI across various business functions. Cisco is driving the adoption of its Silicon One chip family in data centers and AI clusters, and accelerating the integration of its Acacia coherent optics product line to meet hyperscale customer demand for high-speed optical interconnects.
This round of layoffs aligns with the pace of Cisco's transformation. In August 2024, the company announced layoffs of about 5,000 employees to focus on networking, security, and AI businesses. Since then, Cisco has completed the acquisition and integration of cybersecurity and observability company Splunk, and has continued to increase investment in AI network infrastructure, including launching Nexus switches for AI clusters, routers powered by Silicon One chips, and security architectures for hybrid clouds.
The labor costs freed up by Cisco this time are expected to be converted into incremental investment in AI-related talent and technology. Robbins previously stated at the partner summit in March 2026 that Cisco would make "AI First" its core strategy for the coming years and is embedding AI capabilities into various business functions, including sales, supply chain, and engineering. This restructuring is the execution of that strategy.
Headquartered in San Jose, California, Cisco reported revenue of $53.8 billion for the 2025 fiscal year and currently employs approximately 86,000 people worldwide. Through this round of structural adjustment, the company is laying the foundation for its next phase of growth.
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