Cisco (CSCO) cuts nearly 4,000 jobs, raises outlook on AI networking demand

Cisco Systems Inc. (CSCO) said May 13, 2026, it will cut nearly 4,000 jobs, or less than 5% of its global workforce, while shifting spending toward AI, optical communications and high-speed networking. Shares rose more than 16% in after-hours trading after the company also raised its full-year forecast. Cisco said it has secured $5.3 billion in AI infrastructure orders so far this fiscal year and lifted its full-year AI order target to $9 billion from $5 billion. Third-quarter networking product orders rose more than 50% from a year earlier, while data center switch orders increased more than 40%. Revenue for the quarter ended April 25 was $15.84 billion, above analysts’ estimates of $15.56 billion. Cisco now expects fiscal 2026 revenue of $62.8 billion to $63.0 billion, up from a prior forecast of $61.2 billion to $61.7 billion. The restructuring is expected to cost as much as $1 billion, including about $450 million in the fourth quarter.