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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThe headline referred to an August 2024 report that Cisco was preparing a second major round of job cuts affecting around 4,000 employees or slightly more. It was not the same event as Cisco’s later May 2026 announcement of fewer than 4,000 additional job reductions.
Reuters sources, as reported by CRN, said the proposed 2024 cuts were expected to be comparable to Cisco’s February 2024 reduction of approximately 4,250 employees.
What the original Cisco layoff report said
The August 2024 story described a potential second Cisco layoff round in the same year. The reported figure was around 4,000 employees or slightly more, with the number expected to be broadly similar to the approximately 4,250 jobs Cisco had announced it would eliminate in February.
Because the initial figure came from Reuters sources rather than a detailed Cisco announcement, “around 4,000” should not be treated as an exact final headcount. The report was also framed as a planned workforce reduction, not as a complete disclosure of affected roles, offices or countries.
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How the 2024 cuts unfolded
February 2024: approximately 4,250 jobs
In February 2024, Cisco announced reductions affecting about 5% of its workforce, or approximately 4,250 employees, according to contemporaneous coverage summarized by CRN. That restructuring was associated with an estimated charge of roughly $800 million.
The cuts came as demand for networking equipment was weaker or uneven and some customers were taking a more cautious approach to spending. Cisco was also trying to shift resources toward businesses it viewed as having stronger growth potential.
August 2024: a larger official restructuring disclosure
Cisco subsequently disclosed a fiscal 2025 restructuring plan expected to affect approximately 7% of its global workforce. Its 2025 annual report estimated pretax restructuring charges of up to $1 billion, with the plan expected to be substantially completed in the second quarter of fiscal 2026.
Reuters coverage carried by Investing.com reported that the August cuts involved approximately 6,000 employees, following the reduction of more than 4,000 employees in February. Cisco’s official disclosure used a workforce percentage rather than necessarily repeating the exact “around 4,000” figure from the original report.
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Why Cisco was restructuring
Cisco described the 2024 restructuring as a realignment of investment and staffing around higher-priority areas, including:
- Artificial intelligence
- Cybersecurity
- Software and services
- Operational efficiency
The strategy reflected a longer-term move away from relying as heavily on traditional hardware. It would be inaccurate to say that AI alone caused every job elimination. Cisco’s rationale also included broader efficiency measures, changing customer demand and the need to redirect resources toward software, security and other growth areas.
The separate May 2026 Cisco layoffs
Cisco announced another restructuring on May 13, 2026. This plan affected fewer than 4,000 jobs, representing less than 5% of the workforce. Notifications were scheduled to begin May 14 and continue globally in accordance with applicable local laws and regulations.
Cisco said the 2026 plan was intended to redirect investment toward silicon, optics, security, artificial intelligence and employees’ use of AI. The company said affected employees would receive information about timing, benefits and available support. It also cited prorated fiscal 2026 bonus payments, placement services and one year of access to Cisco U courses and certifications. Details could vary by country and applicable law. The company’s employee communication did not mean that every affected worker would receive identical terms worldwide.
The 2026 event should therefore be described as a separate additional restructuring. “Around 4,000” in the August 2024 report and “fewer than 4,000” in Cisco’s May 2026 announcement are different descriptions of different events.
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Why layoffs can happen while revenue is growing
Cisco’s 2026 cuts were announced alongside strong operating results. The company reported record third-quarter fiscal 2026 revenue of $15.8 billion, up 12% year over year, and said AI-hyperscaler orders had reached $5.3 billion year to date, according to its quarterly results.
Layoffs do not necessarily indicate that a company is facing an immediate liquidity crisis or that its entire business is shrinking. Large technology companies can reduce roles in some functions while hiring, investing or reallocating capital toward others. Revenue growth may come from products that require different skills, locations or staffing levels than older product lines.
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Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about affected workers
For the August 2024 report, the available public material does not establish a complete authoritative list of affected locations, countries or job families. It would be speculative to say the cuts were concentrated in a particular division without a supporting filing, layoff notice or Cisco statement.
For the separate 2026 restructuring, California layoff notices later identified 471 positions across three Bay Area offices. Reported roles included software engineering, product management, design and business operations, according to the Los Angeles Times. That figure is a documented California subset, not the total global number of 2026 reductions.
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Employment timing, benefits and severance can differ by country. Cisco said its global notifications would follow applicable local laws and regulations, so U.S.-specific assumptions should not be applied to all affected employees.
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What the $1 billion figures do—and do not—mean
A restructuring charge is an accounting estimate for costs such as severance and other one-time implementation expenses. It is not the same as annual savings.
Cisco estimated pretax charges of up to $1 billion for both its fiscal 2025 restructuring disclosure and, separately, its fiscal 2026 restructuring plan. For the 2026 plan, Cisco’s Form 10-Q said approximately $450 million was expected in the fourth quarter of fiscal 2026, with the remainder expected in fiscal 2027. The plan was expected to be substantially completed by the end of fiscal 2027.
Cisco also said it expected to reinvest substantially all cost savings from the 2026 plan in priority growth opportunities and did not expect the overall cost savings to be material. “Q4 FY2026” is Cisco’s fiscal-quarter designation and should not automatically be read as the fourth quarter of calendar 2026.
The timeline in one view
| Date | Event | Reported detail |
|---|---|---|
| February 2024 | First major 2024 reduction | Approximately 4,250 employees, or about 5% of the workforce. |
| August 2024 | Reported second round | Around 4,000 employees or slightly more, according to Reuters sources cited by CRN. |
| August 2024 | Official restructuring disclosure | Approximately 7% of the global workforce; charges of up to $1 billion. |
| May 13, 2026 | Separate new restructuring | Fewer than 4,000 jobs, or less than 5% of the workforce. |
| June 2026 | California notices | 471 positions identified across three Bay Area offices as part of the broader 2026 plan. |
Bottom line: The “Cisco To Lay Off Around 4,000 Employees” headline was a genuine August 2024 report about a possible second round of cuts. Cisco later confirmed a broader 2024 restructuring plan, although its official filing expressed the impact as approximately 7% of the global workforce rather than an exact 4,000-person total. Cisco’s May 2026 announcement of fewer than 4,000 additional job reductions was a separate event, driven by another workforce realignment toward AI, silicon, optics and security—not evidence that the 2024 report referred to 2026.
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