Cisco Reports Record Revenue, Announces 4,000 Layoffs
Cisco has announced its highest-ever quarterly revenue, reaching $15.8 billion in Q3 of fiscal year 2026. The announcement was made by CEO Chuck Robbins via a company blog post on Wednesday, May 14, 2026.
The technology and computer networking company stated that its revenue for Q3 of fiscal year 2026 reached $15.8 billion, or approximately Rp 278 trillion (exchange rate of Rp 17,600). This represents a 12% increase compared to the same period last year and marks Cisco’s highest quarterly revenue to date.
However, alongside the announcement of record revenue, Cisco also revealed a global workforce reduction. “We are making changes today that will result in a total workforce reduction of less than 4,000 employees, or less than 5% of our total employee base, in Q4,” wrote Robbins. He added that most of these layoff notices will be issued on May 14, 2026, and will be carried out gradually in various countries in accordance with local laws and regulations.
Robbins stated that technology companies that “will win in the age of AI” must be able to shift their investments to sectors with the greatest long-term growth potential. “This means making difficult decisions about where we invest, how we organize, and how our cost structure reflects the opportunities ahead,” said Robbins.
Cisco’s commitment to the AI business is also evident in the growth of the company’s AI infrastructure sales. In its financial report, Cisco also revealed that throughout the fiscal year, sales of AI infrastructure to hyperscale companies have reached $5.3 billion (approximately Rp 93 trillion). Cisco has even increased its AI infrastructure order forecast to $9 billion from $5 billion. Meanwhile, the AI business revenue forecast has increased from $3 billion to $4 billion.
Cisco’s Chief Financial Officer (CFO) Mark Patterson emphasized that the decision to reduce thousands of employees is not intended to cut company expenses. In a call with investors, Patterson said the restructuring is being carried out to enable Cisco to move faster and keep up with the rapidly changing AI industry.