Cisco’s latest earnings day encapsulated a stark contradiction in Big Tech: the company reported record revenue while simultaneously announcing thousands of job cuts.

Early May 2026: Record quarter sets the stage

In a blog post ahead of the layoffs, Cisco CEO Chuck Robbins highlighted that the company’s fiscal Q3 2026 revenue rose 12% year over year to $15.8 billion, describing it as “record revenue” and praising “the growth you have all delivered for Cisco.”¹ On the same day, the networking giant also reported better-than-expected profit, underscoring strong overall financial health.²

Layoffs announced: fewer than 4,000 jobs cut

Shortly after touting those results, Robbins informed employees that Cisco would reduce its workforce in Q4 by “fewer than 4,000 jobs, representing less than 5 percent of our total employee base,” with most notifications beginning May 14 and continuing globally in line with local laws.¹ Another account similarly described the cut as “fewer than 4,000 jobs, or around 5% of its workforce.”²

Company narrative: strategic AI and security pivot

Robbins framed the cuts as part of a strategic realignment toward AI infrastructure and key technologies, arguing that companies that “will win in the AI era” must continually shift investment to areas “where demand and long-term value creation are strongest.”¹ Cisco said it was changing its “cost structure” to invest in AI and cybersecurity, pointing to a surge in AI infrastructure sales and growing orders from hyperscalers.²

CFO Mark Patterson stressed that this was “really not a savings-driven restructure,” but a move to realign from “an already strong base.”¹

Human impact and broader context

For affected staff, Cisco promised prorated bonuses, job placement assistance, and access to Cisco U courses and certifications.¹ Yet the decision follows multiple prior rounds of layoffs in 2024 and 2025, and comes as tech firms like Cloudflare and General Motors also cut jobs despite strong financials, often citing AI priorities.²