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Cisco To Cut Almost 4,000 Jobs In AI-Driven Restructuring

(Thursday May 14, 2026 @11:00AM (BeauHD) from the familiar-moves dept.)


Cisco's stock soared 17% after the company announced it will [1]cut nearly 4,000 jobs as it shifts investment and staffing toward higher-growth AI opportunities. CNBC reports:

> CEO Chuck Robbins wrote in a [2]blog post on Wednesday that the latest round of job cuts will begin on May 14. Cisco is the latest company to announce head count reductions tied to AI. "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," Robbins said. "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."

>

> Cisco said in a filing that severance and other costs will result in pre-tax charges of $1 billion, and that the company will recognize about $450 million of that in the fiscal fourth quarter. During the third quarter, Cisco announced switches and routers that use its next-generation processor. The company also debuted a leaderboard for ranking generative AI models based on their robustness against cybersecurity attacks.



[1] https://www.cnbc.com/2026/05/13/cisco-csco-q3-earnings-report-2026.html

[2] https://blogs.cisco.com/news/our-path-forward


Creative Storytelling (Score:2)

by Himmy32 ( 650060 )

Cisco has been [1]cutting back [slashdot.org] for [2]the past [slashdot.org] several [3]years [slashdot.org]. Being "tied to AI" is likely creative story exercise to the shareholders, restructuring and shedding staff in a slower economy after a low interest rate fueled acquisition spree sounds better if you pin the tail on the AI donkey.

[1] https://tech.slashdot.org/story/24/09/19/0743238/ciscos-second-layoff-of-2024-affects-thousands-of-employees

[2] https://slashdot.org/story/24/08/15/025228/cisco-slashes-thousands-of-workers-as-it-announces-yearly-profit-of-103-billion

[3] https://tech.slashdot.org/story/24/03/15/2340257/tech-layoffs-highest-since-dot-com-crash

$250,000 per layoff? (Score:2)

by CubicleZombie ( 2590497 )

Or does "other costs" mean bonuses for those at the top? I'm guessing Chuck needs a new yacht and a new private jet.

Fucking Christ Trump put us into a recession (Score:2)

by rsilvergun ( 571051 )

I am so sick and tired of fucking pretending we are not in a deep deep recession.

I know what they're doing they are trying to hold out from the word recession showing up in the press before the midterms. The economy is a large complex beast and it will take time for the majority of voters to get their asses kicked by what's coming.

There's an old saying, when it's your neighbor's job it's a downturn and when it's your job it's a recession.

But fuck it's so frustrating. I am so sick and tired of lo

Old programmers never die, they just become managers.