Cisco announces record revenue and 4,000 layoffs in the same day
Summary
Cisco reported record quarterly revenue of $15.8B for Q3 2026, up 12% year-over-year, while announcing layoffs of fewer than 4,000 employees (less than 5% of the workforce). The reductions are framed as a realignment toward silicon, optics, security, and AI rather than a savings-driven restructure. Up to $1B in pre-tax charges are expected, with $450M recognized in Q4 FY '26 and the remainder in FY '27, plus bonuses and job-placement support for affected workers. The company highlighted AI demand, noting $5.3B in AI infrastructure sales thus far and projections of $9B in orders and $4B in revenue for the year.