Cisco cuts 4,000 jobs, boosts AI spending amid record quarterly revenue
▼ Summary
– 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 company is reducing headcount to change its cost structure and invest more in AI and cybersecurity.
– Cisco’s layoffs follow a tech industry trend of companies prioritizing AI spending while letting employees go, as seen with Cloudflare and General Motors.
– Cisco plans to increase cybersecurity investment after facing security vulnerabilities in its routers and firewalls, and a data breach that affected customer personal information.
– CEO Chuck Robbins touted record revenue and double-digit growth, and is slated to earn over $52 million in 2025 executive compensation.
Technology company Cisco has announced it will eliminate fewer than 4,000 positions, representing about 5% of its global workforce. The job cuts come even as the company reported stronger-than-expected profit and revenue in its fiscal third quarter.
The networking equipment giant stated the reduction is part of an effort to reshape its “cost structure” while reallocating resources toward artificial intelligence and cybersecurity. Cisco follows a growing pattern among tech firms that prioritize AI investments while trimming staff. In recent days, both Cloudflare and General Motors have conducted layoffs despite posting strong financial performance.
Cisco plans to increase spending on cybersecurity as it continues to grapple with multiple security flaws in its routers and firewalls. These vulnerabilities have enabled hackers to infiltrate the networks of corporate clients, including the U. S. government. The company also suffered a data breach last year that exposed customers’ personal information.
In a blog post on Wednesday, Cisco CEO Chuck Robbins highlighted the company’s “record revenue” and “double-digit growth.” He acknowledged that the firm is making strategic investments “in our employees’ use of AI across the company.”
According to public filings, Robbins was set to receive over $52 million in executive compensation during 2025. When contacted by TechCrunch, a Cisco spokesperson declined to comment beyond Robbins’ statement and did not respond when asked if Robbins plans to reduce his own pay.
This marks the latest round of job cuts at Cisco in recent years. The company laid off thousands of employees in two separate rounds during 2024 and cut 150 jobs earlier in 2025.
(Source: TechCrunch)
