Cisco cuts nearly 4,000 jobs following record earnings beat. The networking giant reported Q3 revenue of $15.8 billion, exceeding expectations, while adjusted earnings per share hit $1.06 versus $1.04 forecasted. The layoffs represent less than 5% of its global workforce and reflect a strategic pivot toward artificial intelligence and high-growth sectors. The announcement drove shares up roughly 20% in after-hours trading. Cisco has already secured $5.3 billion in AI infrastructure orders from hyperscalers year to date and now projects $9 billion in total AI orders for FY2026, up from previous guidance of $5 billion. The company expects AI segment revenue to reach $4 billion. Workforce notifications begin May 14, with severance packages and job placement assistance provided to affected employees.
