Cisco Systems is eliminating nearly 4,000 positions—about 5% of its workforce—despite reporting record quarterly revenue and double-digit growth. CEO Chuck Robbins said the cuts are part of a restructuring to redirect spending toward artificial intelligence and cybersecurity. The layoffs come on the heels of two previous reduction rounds in 2024 and a smaller 150-job cut earlier in 2025, adding to a pattern that has drawn analyst scrutiny.
Amazon confirmed additional layoffs this week in its Selling Partner Services division, which handles onboarding and account management for millions of third-party merchants. A spokesperson described the round as affecting a “relatively small number” of employees but did not provide an exact figure. This follows about 30,000 job cuts across multiple rounds since October 2025 and a smaller reduction in the robotics division. CEO Andy Jassy has warned that AI could help “reduce” the workforce over time.
LinkedIn, owned by Microsoft, also announced plans to cut approximately 5% of its staff—roughly 875 people—targeting engineering, marketing, and global business teams. CEO Daniel Shapero framed the move as a step to operate “more profitably” and shift investment toward infrastructure.
The wave of layoffs highlights a broader trend in the technology sector. Cloudflare, Meta, Block, Oracle, and Coinbase are among the companies that have reduced headcount in 2026. Block said in February it planned to eliminate nearly half its workforce, while Cloudflare announced a 20% cut last week. More than 103,000 tech-sector layoffs have been recorded so far this year, nearly matching the 124,000 total for all of 2025, according to Layoffs.fyi.
Corporate leaders across the industry have consistently pointed to AI as the driving force behind the restructuring. Cisco’s projected orders from hyperscale data center operators have nearly doubled to $9 billion for fiscal 2026. Cisco shares surged more than 13% after the layoff news, and its fiscal fourth-quarter outlook far exceeded Wall Street expectations. While the immediate cost savings are welcomed by investors, the long-term impact on innovation and employee morale remains uncertain, even as crypto-native firms like Coinbase and Block face similar pressures.
