Cisco Cuts Nearly 4,000 Jobs for AI Shift, Posts Record Revenue
Cisco, a major player in networking hardware, will reduce its workforce by fewer than 4,000 employees. That figure represents roughly 5% of its total staff. The cuts occur even as the company posted profits and revenue that beat analyst expectations for its fiscal third quarter.
The firm aims to alter its cost structure through these reductions. It wants to direct more resources toward artificial intelligence and cybersecurity initiatives. Cisco builds routers, switches, and other equipment that powers much of the internet infrastructure worldwide. Founded in 1984 by Leonard Bosack and Sandy Lerner, the company has grown into one of the largest providers of enterprise networking solutions.
Strong Finances Amid Layoffs
Cisco joins a pattern seen across the tech sector. Companies have trimmed staff lately while pointing to AI priorities as the driver. Cloudflare and General Motors both announced layoffs in recent days. They did so despite positive financial updates.
The company's chief executive, Chuck Robbins, highlighted these results in a blog post on Wednesday. He called attention to record revenue and double-digit growth. Robbins also noted strategic investments to help employees incorporate AI into their daily work. Robbins has led Cisco since 2015, guiding it through expansions into software, security, and cloud services.
Push for Cybersecurity Investments
Cisco intends to boost spending on cybersecurity. The company faces ongoing challenges with security flaws in its routers and firewalls. Those issues have let hackers access networks belonging to corporate clients, including parts of the U.S. government. In addition, Cisco dealt with a data breach last year. That incident exposed personal details of some customers.
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These problems underscore the pressures on networking leaders to strengthen defenses. Cisco's products connect millions of devices globally, making robust security essential for trust.
Executive Pay and No Comment
Public filings show Robbins stood to receive over $52 million in compensation for 2025. A Cisco spokesperson did not respond to inquiries. TechCrunch asked specifically if the CEO would cut his own pay, but got no answer.
Previous Workforce Reductions
This marks another chapter in Cisco's recent downsizing efforts. In 2024, the company conducted two major layoff rounds that affected thousands of workers. Then, in 2025, it eliminated 150 positions.
Such actions reflect broader shifts in the industry. Tech firms adapt to economic conditions and emerging technologies like AI. Cisco's moves aim to position it for growth in high-demand areas while managing expenses.