You sound young. I'll try to explain the logic hear.
Some people are let go due to sub-par performance. But LR stands for Limited Restructuring.
Most people are let go through no fault of their own. The idea behind the LR is that upper management is aligning job roles to the business strategy*. Positions are being eliminated, and not refilled. So if the company is getting out of a business area, or decreasing its focus on an area, or if it thinks the job can be done with less people, then those roles are LR'ed. Other reasons for LR - if the position is moved to a a low-cost country, or if they think the product is selling itself (for sales positions, even when sales targets are met).
In your case it sounds like upper management has decided that your role is not going to be important enough to the company going forward to justify the cost. You were probably told that you can look for a different position within Cisco, which you can. And being on the LR will not be held against you. So take a look at the external job market, and also work your network within CIsco if you would reconsider staying.
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This is the theory. The competence of the ELT, and senior levels is a different matter. When interns are eliminated, or people in roles for a year or so - it just shows that they are reacting, and not planning ahead at all. Paying someone 1/2 a year salary to leave when they've been with the company for a year is just laughable.