Cisco announces record revenue and 4,000 layoffs in the same day
During a call with investors on Wednesday night, Cisco executives discussed the layoffs further, with CFO Mark Patterson saying, “This was really not a savings-driven restructure,” according to a transcript of the call.
“Things are moving incredibly fast right now,” he said. “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.”
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.
“These [layoffs] are building from a position of strength and focusing on the technologies that...
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