Strong Numbers, Hard Decisions: CEO Chuck Robbins Says Cisco Must Shift Investment Toward AI To Win The Next Decade, And That Means Letting People Go
This article was compiled and made possible with the help of the following source(s): NetworkWorld.
Cisco just had one of its best quarters on record. It also just announced one of its largest rounds of job cuts in recent memory. The company reported record Q3 FY2026 revenue of $15.8 billion, up 12 percent year on year, driven by extraordinary momentum in AI infrastructure.
AI infrastructure orders from hyperscalers reached $1.9 billion in Q3, up from $600 million last year, with a year-to-date total of $5.3 billion exceeding FY26 expectations. Full fiscal year 2026 AI infrastructure orders are expected to reach approximately $9 billion, which is 4.5 times FY25 levels.
Networking product orders grew more than 50 percent in Q3, led by triple-digit growth in service provider routing and compute, and strong gains across data center switching, campus switching, wireless, enterprise routing and industrial IoT.
Despite all of this, CEO Chuck Robbins announced Cisco will reduce its workforce by fewer than 4,000 jobs, representing less than five percent of total employees, with most notifications beginning May 14.
Robbins described the cuts as strategic, stating the company is making clear investments in silicon, optics, security and AI, adding that companies winning the AI era will be those with focus, urgency and the discipline to continuously shift investment toward areas where demand and long-term value creation are strongest.
The numbers are great. The message is clear. Cisco is restructuring around the AI economy, and not every role survives the pivot. Like this business-focused article? Read our previous article here.
