Cisco cuts nearly 4,000 jobs to spend more on AI, reports ‘record quarterly revenue’
Source: TechCrunch
Technology giant Cisco is cutting fewer than 4,000 jobs—about 5 % of its workforce—despite reporting better‑than‑expected profit and revenue in its fiscal third quarter.
The networking equipment maker said it is reducing headcount to change its “cost structure” and invest in AI and cybersecurity.
Cisco’s decision follows a recent trend of tech companies citing a priority on AI spending as a reason for layoffs. Cloudflare and General Motors have both laid off staff in recent days, despite reporting strong financial results.
Security challenges
Cisco said it plans to invest more in cybersecurity as it continues to contend with a slew of security vulnerabilities in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers, including the U.S. government.
- Recent exploits:
Last year Cisco also experienced a data breach in which customers’ personal information was affected — see the report on the voice‑phishing attack that stole Cisco customers’ data.
AI investment and executive compensation
In a blog post published Wednesday, Cisco’s chief executive Chuck Robbins touted the company’s “record revenue” and “double‑digit growth,” while acknowledging strategic investments “in our employees’ use of AI across the company.”
According to public filings, Robbins was slated to earn more than $52 million in executive compensation during 2025. A Cisco spokesperson did not return a request for comment, or say, when asked by TechCrunch, if Robbins plans to reduce his compensation.
Previous layoffs
This is the latest round of job cuts at Cisco. The company previously:
- Laid off thousands of employees during two separate layoffs in 2024 – see the coverage of the second 2024 layoff.
- Cut 150 jobs in 2025 – see the announcement made days after the CEO said the company wouldn’t cut jobs in favor of AI.
Image credit: Kent NISHIMURA / Getty Images