Cisco announces $1 billion restructuring plan to focus on AI and security

Cisco Systems announced a restructuring plan on May 13, 2026, to enable investment in growth areas including silicon, optics, security and artificial intelligence.

The networking equipment company (NASDAQ: CSCO) estimates it will recognize pre-tax charges of up to $1 billion in its GAAP financial results. The charges consist of severance and other one-time termination benefits, along with additional costs, according to the company's statement.

Cisco expects to recognize approximately $450 million of these charges in the fourth quarter of fiscal 2026, with the remaining amount to be recognized during fiscal 2027. The company described the charges as primarily cash-based.

The restructuring aims to allow Cisco to allocate resources toward what it identifies as key growth opportunities in the technology sector.

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