Cisco cuts nearly 4,000 jobs to spend more on AI, reports ‘record quarterly revenue’

In Brief

Technology elephantine Cisco is cutting less than 4,000 jobs, oregon astir 5% of its workforce, contempt reporting better-than-expected nett and revenue successful its fiscal 3rd quarter. 

The networking instrumentality shaper said it reducing its headcount successful bid to alteration its “cost structure” and put successful AI and cybersecurity.

Cisco’s determination follows a caller inclination of tech companies progressively citing a precedence connected AI spending arsenic a crushed to fto employees go. Cloudflare and General Motors person some laid disconnected unit successful caller days, contempt reporting beardown fiscal results.

Cisco said it plans to put much successful cybersecurity, arsenic the institution continues to contend with a slew of security vulnerabilities successful its routers and firewalls that person allowed hackers to interruption into the networks of its firm customers, including the U.S. government. Cisco past twelvemonth besides experienced a information breach successful which customers’ idiosyncratic accusation was affected.

In a blog post published Wednesday, Cisco’s main enforcement Chuck Robbins touted the company’s “record revenue” and “double-digit growth,” portion acknowledging that the institution was making strategical investments “in our employees’ usage of AI crossed the company.”

According to nationalist filings, Robbins was slated to gain much than $52 cardinal successful enforcement compensation during 2025. A Cisco spokesperson did not instrumentality a petition for comment, oregon say, erstwhile asked by TechCrunch, if Robbins plans to trim his compensation.

This is the latest circular of occupation cuts astatine Cisco successful caller years. The institution laid disconnected thousands of employees during 2 abstracted layoffs successful 2024, and cut 150 jobs successful 2025.

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