Total 1 billion restructuring cost. The same amount as 2024, where they impacted 7,000 employees.
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No, the real LR scale is less than 4K, but this time has too many mangers, directors have to go, so the severance cost is higher, it is actually a restructuring.
@cj that could be an element but still it’s allmost 1/2
@c4 the engineers that got the blanket promos cost more to fire now.
2024 - 7000 employees - 1B$
2026 - 4000 employees - 1B$
Where are the missing 3000 ???
@a8 then why put aside $1B and spend only $450M on less than 4000 peoples?
Read and read between the lines duh!
No, the second half is for countries like the UK who have long redundancy processes. People there will not learn they are on the chopping block for another 2-3 months.
@b0 You say Cisco will continue migrating its workforce to a combination of (1) India, (2) Eastern Europe contractors, and (3) AI and if you're not one of those, you'll be gone soon enough. Relax, it's not nearly that dramatic. There will still be plenty (perhaps fewer, but still plenty) of North America-based employees and we all know this.
It is right there in the report: https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2026/m05/cisco-reports-third-quarter-earnings.html
On May 13, 2026, Cisco announced a restructuring plan in order to allow it to invest in key growth opportunities including silicon, optics, security and AI. In connection with this restructuring plan, Cisco currently estimates that it will recognize pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. Cisco expects to recognize approximately $450 million of these charges in the fourth quarter of fiscal 2026 with the remaining amount expected to be recognized during fiscal 2027.
our manager sent out a meeting to our whole team for this morning about 15 minutes before our shift starts. stated its in relation to CR email but cannot discuss it any earlier. I doubt the whole team can be LR so Im not sure why so early unless individual meetings or calls are done before this meeting to let people go.
It doesn't matter if you are in tech or some other white collar job. We were all put on notice 2 years ago about AI. If you somehow ignored the memo and every single news article over the past 2 years then that is on you. And to ignore a world changing technology evolution means you shouldn't be in tech anyways. Rearranging of the deck chairs is going to happen across every industry due to AI, act accordingly.
It doesn't matter when or how, Cisco will continue migrating its workforce to a combination of (1) India, (2) Eastern Europe contractors, and (3) AI.
If you aren't one of those, you are eventually going to be cut, and before that you will see your incentives minimized.
When I started at Cisco, everyone I worked with was a full-time employee in North America. Now, less than half with no hiring happening in North America, only reductions.
So if you stay, you just wait for your time.
@a6 For real! That not anything the report stated. Nor was it anything Chuck or Mark stated either for August. What Cisco
ACTUALLY said:
Fewer than 4,000 jobs
Less than 5% of workforce
Notifications begin May 14 and continue globally
$1B restructuring charges spread across Q4 FY26 + FY27.
@a6 The $1 billion figure represents total pretax restructuring charges covering comprehensive severance, benefits, and operational costs rather than just individual employee salaries. So in addition to layoffs it accounts for real estate consolidation and global regulatory fees, with costs spread over multiple fiscal years and no indication of further layoffs right now at least
@a2 learn to read the report!
posted on the website, 1 b was allocated, part of it now, part of it will be dragged to 2027
Source?