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

In a significant move, technology powerhouse Cisco has announced plans to reduce its workforce by nearly 4,000 positions, translating to about 5% of its total employees. This decision comes despite the company reporting impressive profits and revenues during its fiscal third quarter, exceeding market expectations. Cisco is restructuring its cost framework to channel more resources into artificial intelligence and cybersecurity initiatives. This trend reflects a growing pattern in the tech industry, where several firms, including Cloudflare and General Motors, have opted for workforce reductions even while enjoying strong financial performance. The company emphasizes its commitment to enhancing cybersecurity measures, especially in light of recent vulnerabilities in its routers and firewalls that have exposed corporate networks, including those of U.S. government entities, to potential breaches. Last year, Cisco itself faced a data breach that compromised customer personal information. In a recent blog post, Cisco's CEO Chuck Robbins highlighted the company's record revenue and strong double-digit growth, while also stressing the importance of integrating AI into the organization. Public filings indicate that Robbins is set to receive over $52 million in executive compensation for 2025, raising questions about whether he will consider a salary reduction amid these layoffs. This latest job reduction marks yet another chapter in Cisco's ongoing adjustments to its workforce, following significant layoffs in both 2024 and 2025, which saw thousands of employees let go.