"“This was really not a savings-driven restructure,” he said. “Things are moving incredibly fast right now. And this 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 being able to move fast, we don't always have the exact resources that we need going forward in the right places. And so that's really what this is about versus savings.”"
"“These [layoffs] are building from a position of strength and focusing on the technologies that will accelerate our growth, deliver unmatched innovation to customers and partners, and define our future,” Robbins said on the call."
"Robbins' blog post said that affected workers will receive “pro-rated payment” of fiscal 2026 bonuses. The company also says it will offer services to help laid-off employees find new jobs. “We will provide support in finding new 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 are also committed to continued personalized learning and will provide one year of access to all Cisco U courses and certifications, covering AI, security, networking, and more.”"
"Due to the layoffs, Cisco expects to “recognize up to $1 billion of pre-tax charges with $450 million to be recognized in the Q4 FY '26 and the remainder during FY '27,” Patterson added."
Cisco executives said recent layoffs are not driven primarily by cost savings. The company described the changes as realigning resources around silicon, optics, security, and AI to move quickly despite gaps in exact resources. Cisco expects to recognize up to $1 billion of pre-tax charges, including $450 million in Q4 FY ’26 and the remainder in FY ’27. Cisco leadership said the layoffs build from a position of strength and focus on technologies intended to accelerate growth and innovation. Affected workers are set to receive pro-rated fiscal 2026 bonuses and support through placement services, with reported success in finding new roles. Cisco will also provide one year of access to Cisco U courses and certifications covering AI, security, networking, and more.
#corporate-layoffs #resource-realignment #ai-and-security #financial-charges #employee-transition-support
Read at Ars Technica
Unable to calculate read time
Collection
[
|
...
]