Restructuring and Other Charges

12 Months Ended

Jul. 26, 2025

In the first quarter of fiscal 2025, we announced a restructuring plan (the “Fiscal 2025 Plan”), in order to allow us to invest in key growth opportunities and drive more efficiencies in our business. The Fiscal 2025 Plan is expected to impact approximately 7% of our global workforce, with estimated pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. In connection with the Fiscal 2025 Plan, we incurred charges of $744 million in fiscal 2025 and the plan is expected to be substantially completed in the second quarter of fiscal 2026. The aggregate pre-tax charges are primarily cash-based and consist of severance and other one-time termination benefits, and other costs.

We initiated a restructuring plan in fiscal 2024 (the “Fiscal 2024 Plan”), in order to realign the organization and enable further investment in key priority areas. In connection with the Fiscal 2024 Plan, we incurred cumulative charges of $654 million and the plan is complete. The aggregate pretax charges related to this plan were primarily cash-based and consist of severance and other one-time termination benefits and other costs.

We initiated a restructuring plan in fiscal 2023 (the “Fiscal 2023 Plan”), which was completed in fiscal 2024. In connection with the Fiscal 2023 Plan, we incurred cumulative charges of $670 million and the plan is complete. The aggregate pretax charges related to this plan were primarily cash-based and consist of severance and other one-time termination benefits, real estate-related charges, and other costs.

The following table summarizes the activities related to our restructuring liability, which is included in other current liabilities on our Consolidated Balance Sheets (in millions):


	FISCAL 2025 PLAN				FISCAL 2024 AND PRIOR PLANS
	Employee Severance		Other		Employee Severance		Other		Total
Liability as of July 30, 2022	$	—	$	—	$	2	$	7	$	9
Charges	—		—		465		66		531
Cash payments	—		—		(302)		(12)		(314)
Non-cash items	—		—		2		(15)		(13)
Liability as of July 29, 2023	—		—		167		46		213
Charges	—		—		731		58		789
Cash payments	—		—		(677)		(14)		(691)
Non-cash items	—		—		—		(37)		(37)
Liability as of July 27, 2024	—		—		221		53		274
Charges	617		127		—		—		744
Cash payments	(582)		(9)		(170)		(9)		(770)
Non-cash items	31		(72)		(29)		(31)		(101)
Liability as of July 26, 2025	$	66	$	46	$	22	$	13	$	147

CISCO SYSTEMS, INC. 10-K