During a call with investors on Wednesday night, Cisco executives discussed the layoffs further, with CFO Mark Patterson saying, “This was really not a savings-driven restructure,” based on a transcript of the decision.
“Things are moving incredibly fast right away,” he said. “And that is more realigning from an already strong base, as you’re seeing in our financials, but really realigning resources around silicon, optics, security, and AI. And so having the ability to move fast, we don’t at all times have the precise resources that we want going forward in the precise places. And in order that’s really what that is about versus savings.”
Attributable to the layoffs, Cisco expects to “recognize as much as $1 billion of pre-tax charges with $450 million to be recognized within the Q4 FY ’26 and the rest during FY ’27,” Patterson added.
“These [layoffs] are constructing from a position of strength and specializing in the technologies that can speed up our growth, deliver unmatched innovation to customers and partners, and define our future,” Robbins said on the decision.
Bonuses and training for laid-off employees
Robbins’ blog post said that affected employees will receive “pro-rated payment” of fiscal 2026 bonuses. The corporate also says it can offer services to assist laid-off employees find recent jobs.
“We’ll provide support find recent opportunities, whether internal or external, through Cisco’s placement services—a program that has seen 75 percent of participants discover their next role,” Robbins said. “We’re also committed to continued personalized learning and can provide one 12 months of access to all Cisco U courses and certifications, covering AI, security, networking, and more.”
This round of layoffs follows the dismissal of 4,245 employees, or 5 percent of the workforce on the time, in February 2024, and about 6,000 people, or about 7 percent of the workforce, in August 2024. Cisco also attributed the latter layoffs to the necessity to restructure around AI and security, The Register reported on the time.