CSCO · 10-K · 2026A · Full report

Restructuring and Headcount

CISCO SYSTEMS, INC. · 2026-09-02 · Importance 51 · Surprise 50 · Matches filing data

Cisco recorded $693 million of restructuring and other charges in fiscal 2026, compared with $744 million in fiscal 2025. A fourth-quarter fiscal 2026 restructuring plan targets investments in silicon, optics, security, and AI, carries estimated pretax charges of up to $1 billion, and generated $511 million of fiscal 2026 charges. The fiscal 2025 restructuring plan generated cumulative charges of $926 million and was substantially completed in fiscal 2026, while the fiscal 2024 plan generated $654 million and is complete. Cisco expects to reinvest substantially all cost savings, so the plans are not expected to produce material net cost savings.

Key facts

• In the fourth quarter of fiscal 2026, Cisco announced a restructuring plan with total pre-tax charges estimated to be up to $1 billion and expected to be substantially completed by the end of fiscal 2027. source
• Cisco incurred cumulative charges of $926 million under the fiscal 2025 restructuring plan and substantially completed that plan in fiscal 2026. source
• In connection with the fiscal 2026 restructuring plan, Cisco incurred charges of $511 million during fiscal 2026. source
• We recognized total restructuring and other charges of $693 million in fiscal 2026 and $744 million in fiscal 2025. source
• Cisco expects to reinvest substantially all of the cost savings from these restructuring plans in its key growth opportunities and key priority areas and expects the overall cost savings to not be material. source

Impact estimates