Cisco Cuts 4,000 Jobs Despite AI Growth

Sarah Mitchell · 2026-05-14

Cisco is making headlines again, but not for the reasons you might expect. The networking giant announced it's cutting nearly 4,000 jobs, even as its AI and enterprise networking segments are booming. It's a move that feels contradictory at first glance, but when you dig deeper, it starts to make sense. ### What's Really Going On? Cisco's decision to trim its workforce comes down to strategic rebalancing. The company is doubling down on high-growth areas like AI, cybersecurity, and cloud networking, while scaling back in slower divisions. Think of it as pruning a tree to help it grow stronger branches. The layoffs affect about 5% of its global workforce, which is roughly 4,000 employees. This isn't just about cost-cutting. It's about freeing up resources to compete more aggressively in markets where demand is skyrocketing. Cisco's enterprise networking revenue jumped 6% last quarter, and its AI-related orders hit $500 million. So why the layoffs? Because legacy hardware sales are flat, and the company needs to pivot fast.  ### The Human Side of the Story Let's be real: 4,000 people losing their jobs is tough. These are real families, real mortgages, and real uncertainty. Cisco says it will offer severance packages and career transition support. But for the tech industry, it's another reminder that even success stories have a cost. On the flip side, this move could position Cisco to hire in areas where talent is scarce right now. AI engineers, cloud architects, and cybersecurity experts are in high demand. By shedding roles that are becoming less critical, Cisco can invest more heavily in the future. ### What This Means for Networking Pros If you're in the networking field, this news should grab your attention. The shift toward AI-driven networking and software-defined solutions is accelerating. Cisco is betting big on these trends, and that means the skills you need to stay relevant are changing. - **AI and machine learning** are becoming core to network management. - **Cloud-based networking** is overtaking traditional hardware setups. - **Cybersecurity skills** are more valuable than ever. For professionals, the takeaway is clear: upskill or risk being left behind. Cisco's move is a signal that the industry is evolving, and the winners will be those who adapt. ### The Bigger Picture Cisco isn't alone. Tech companies across the board are restructuring. Microsoft, Google, and Amazon have all made similar moves in recent years. The difference here is that Cisco's layoffs come alongside strong revenue growth. That's unusual, but it reflects a strategic pivot rather than a crisis. In fact, Cisco's total revenue grew 13% year-over-year to $13.6 billion. Its networking division, which includes switches and routers, saw a 10% increase. The company's order backlog for enterprise networking is the highest it's been in years. So the cuts are about focusing on what works, not fixing what's broken. ### What to Watch Next Cisco's next moves will be telling. Look for more acquisitions in AI and cybersecurity, deeper partnerships with cloud providers, and a continued shift from hardware to software subscriptions. The company's stock dipped slightly on the news, but analysts remain bullish. For networking pros, this is a wake-up call. The days of relying on traditional networking skills alone are fading. Embrace AI, learn cloud architectures, and invest in cybersecurity. That's where the growth is. In the end, Cisco's job cuts are a reminder that even the biggest players have to evolve. The question isn't whether change is coming, but whether you're ready for it.