Cisco Reports 12% Revenue Rise as It Trims Under 5% of Workforce

Context Cisco’s third fiscal quarter ended with record earnings, prompting CEO Chuck Robbins to announce the start of a new layoff round. The cuts begin May 14 and will be rolled out globally in line with local labor laws.

Key Facts - Revenue reached $15.8 billion, a 12% increase from the same quarter last year. - The company will eliminate fewer than 4,000 positions, representing less than 5% of its total workforce. - AI‑focused hardware sales hit $5.3 billion this fiscal year, driven by deals with large cloud providers known as hyperscalers. - Cisco now projects AI infrastructure orders to hit $9 billion for the full year, up from $5 billion, and expects AI‑related revenue to climb to $4 billion.

What It Means The revenue surge shows strong demand for Cisco’s networking and AI products, especially from cloud giants that rely on high‑performance infrastructure. However, the layoffs signal a strategic shift: the firm is reallocating resources toward silicon, optics, security and internal AI adoption while tightening its cost base. By shedding under‑5% of staff, Cisco aims to preserve cash flow and fund growth areas that promise higher long‑term value.

Watch for how Cisco’s AI hardware pipeline evolves and whether the cost reductions translate into higher profit margins in the next quarter.