On May 13, 2026, Cisco announced plans to cut nearly 4,000 jobs globally as part of a restructuring focused on artificial intelligence, cybersecurity, silicon, optics, and other high-growth business areas.
According to reporting by Reuters and The Globe and Mail, the layoffs represent less than 5% of Cisco’s global workforce and come despite strong revenue growth tied to AI demand. The reports also noted that Cisco raised its annual revenue forecast to between approximately US$62.8 billion and US$63 billion as demand for AI-powered networking equipment continues to increase. Reuters further reported that Cisco’s shares rose sharply following the announcement, as investors responded positively to the company’s AI-focused strategy.
Cisco has not publicly disclosed how many Canadian employees may be affected. However, the company maintains operations in Canada and has a longstanding presence in Ontario’s technology sector.
Cisco stated that the restructuring is intended to shift investment toward AI infrastructure and other strategic growth areas. Even when layoffs are framed as an AI-focused restructuring, Canadian employees remain entitled to proper notice and severance under Canadian employment law.
If you receive a severance offer or termination package from Cisco, do not sign anything without first obtaining legal advice.
Who May Be Affected in Canada?
While Cisco has not released a country-specific breakdown of the layoffs, affected roles in global technology restructurings commonly include:
- Technology and engineering roles — including software, infrastructure, networking, product, and technical support positions.
- Sales and customer-facing roles — including account management, channel partnerships, and business development.
- Corporate and support roles — including HR, recruiting, finance, operations, and administrative functions.
- Management and strategy roles — especially where companies are reducing layers or reallocating resources toward AI-related priorities.
Cisco employees in Canada are generally non-unionized. This means their termination entitlements may depend on provincial employment standards legislation, their employment contract, and common law reasonable notice.
Why This Matters for Canadian Employees
When multinational companies announce global layoffs, severance packages are often standardized across countries. However, Canadian employment law differs significantly from U.S. law.
In the United States, employment is often “at-will”, meaning an employer can generally terminate employment at any time, for almost any reason, without advance notice, subject to limited exceptions.
In Canada, non-unionized employees are typically entitled to reasonable notice of termination or pay in lieu. This can exceed the minimum amounts set out in provincial employment standards legislation.
For employees in Ontario and across Canada, termination entitlements may be governed not only by provincial statutes such as Ontario’s Employment Standards Act, but also by common law reasonable notice principles developed by the courts.
This means Canadian employees affected by Cisco layoffs may be entitled to significantly more compensation than what is initially offered.
Read more: At Will Employment Canada – Know Your Rights
Does Canadian Law Apply If You Work for an American Company?
If you perform your work in Canada, even for a U.S.-based company, Canadian employment law will generally apply to your termination.
In Ontario, the Employment Standards Act, 2000 sets out minimum standards for termination and severance pay. Employers cannot contract out of these minimum protections (ESA, s. 5).
The Ontario Ministry of Labour confirms that the ESA applies to employees who perform work in Ontario, including remote workers (Government of Ontario).
In addition to statutory minimums, Canadian courts may award common law reasonable notice based on factors such as age, length of service, position, compensation, and the availability of comparable employment.
The fact that Cisco is headquartered in the United States does not eliminate Canadian statutory or common law protections for employees working in Ontario.
Your Rights if You’re Laid Off or Terminated
Under Canadian common law, courts assess reasonable notice by considering factors including:
- Length of service
- Age
- Position and level of responsibility
- Compensation structure
- Availability of comparable employment
Depending on these factors, employees may be entitled to several months — and in some cases substantially more — in compensation.
This can be especially important for technology employees, where compensation may include salary, bonuses, commissions, restricted stock units, equity awards, benefits, and other forms of variable compensation.
Employers frequently offer only the minimum statutory termination or severance pay required under provincial employment standards legislation. These minimums are often far below what an employee may be entitled to under common law.
Before signing any severance package, it is important to understand your full legal entitlement.
Wondering what you’re owed? Use our Severance Pay Calculator to estimate your potential entitlement based on your age, tenure, and role.
Potential Issues with Cisco Layoff Notices
- Insufficient notice periods — failing to provide adequate notice or pay in lieu of notice under Canadian law.
- Standardized global severance packages — applying U.S. or global severance terms that may not reflect Canadian legal entitlements.
- Incomplete compensation treatment — failing to properly address bonuses, commissions, RSUs, equity, deferred compensation, or accrued vacation pay.
- Benefits continuation issues — ending health, dental, disability, or other benefits too early.
- Pressure to sign quickly — imposing deadlines that discourage employees from seeking legal advice.
Common Red Flags in Cisco Severance Packages
- Short turnaround times or “sign-by” dates.
- Lump-sum offers that do not explain how the amount was calculated.
- Missing details about benefits continuation.
- Unclear treatment of bonuses, commissions, RSUs, stock options, or other equity compensation.
- Release language that prevents you from pursuing additional compensation.
- Statements suggesting the offer is final before you have obtained legal advice.
If you see any of these signs, pause and get professional advice from an employment lawyer before signing.
Wrongful Dismissal and Cisco Layoffs
In Ontario and across Canada, wrongful dismissal occurs when an employer ends employment without providing sufficient notice or pay in lieu as required by common law and provincial employment standards laws.
You may have a wrongful dismissal claim if your severance package does not properly account for your age, length of service, position, compensation, benefits, bonus, commission, equity, or the difficulty of finding comparable work.
Pursuing a wrongful dismissal claim may help you recover additional compensation beyond what was initially offered.
How Monkhouse Law Can Help
Monkhouse Law Employment Lawyers represents non-unionized employees in severance negotiations, wrongful dismissal claims, and employment disputes.
We can help Cisco employees by:
- Reviewing severance packages before anything is signed.
- Assessing full legal entitlements under provincial employment standards legislation and common law.
- Negotiating improved severance, including compensation for benefits, bonuses, commissions, and equity where applicable.
- Representing employees in wrongful dismissal claims where terminations are mishandled.
Contact Us for a Free Consultation
If you have been laid off or offered severance by Cisco in Canada, do not sign anything before understanding your rights. Contact Monkhouse Law Employment Lawyers for a free 30-minute phone consultation.