Cisco announces a write-off and 4,000 layoffs on the same day

In a call with investors Wednesday night, Cisco executives discussed the layoffs again, with CFO Mark Patterson saying, “This was not a cash-driven restructuring,” according to the CFO. documents of calling.

“Things are moving very quickly at the moment,” he said. “And that’s starting from an already strong base, as you see in our economy, but re-engineering things around silicon, optics, security, and AI.

As a result of the layoffs, Cisco expects to “recognize approximately $1 billion in pre-tax income with $450 million to be recognized in Q4 FY ’26 and the remainder in FY ’27,” Patterson added.

“These (delegates) are building strength and focus on technologies that will fuel our growth, deliver unparalleled innovation to our customers and partners, and define our future,” Robbins said on the call.

Bonuses and training for laid off workers

Robbins’ blog post said the affected employees will receive “statutory payments” of financial bonuses through 2026. The company also said it will provide assistance to help the laid-off employees find new jobs.

“We will provide support to find new opportunities, whether internal or external, through Cisco placements—a program that has seen 75 percent of participants find their next job,” Robbins said. “We are also committed to continuing personal learning and will offer one year of access to all Cisco U courses and certifications, covering AI, security, networking, and more.”

The layoffs follow the layoffs of 4,245 employees, or 5 percent of the workforce at the time, in February 2024and about 6,000 people, or about 7 percent of the workforce, in August 2024. Cisco said that the latest layoffs were due to restructuring efforts around AI and security, The Register was said at the time.