Cisco is cutting nearly 4,000 jobs, equivalent to about 5% of its workforce, to reallocate resources towards AI and cybersecurity. This announcement comes despite the company reporting a record quarterly revenue for its fiscal third quarter.
Strategic Cost Structure Shift
The networking giant cited a need to adjust its cost structure to support increased spending on AI and cybersecurity initiatives. This move aligns with a broader trend in the tech industry, where companies like Cloudflare and General Motors are also downsizing staff despite strong financial results.
Cybersecurity Focus
Cisco intends to bolster its cybersecurity measures following multiple security breaches. The company has faced vulnerabilities in its routers and firewalls, exploited by hackers to breach networks, including those of the U.S. government. Last year, a data breach also affected customer personal information.
Record Revenue and Executive Compensation
In a blog post, CEO Chuck Robbins highlighted the company's record revenue and double-digit growth, emphasizing strategic investments in AI. Public filings reveal Robbins's executive compensation exceeded $52 million in 2025, although Cisco declined to comment on potential changes to this remuneration.
This workforce reduction is Cisco's latest in a series of layoffs, following rounds in 2024 and 2025. The company aims to navigate the evolving tech landscape by prioritizing AI and cybersecurity investments, anticipating these areas as critical for future growth.
Source: https://techcrunch.com/2026/05/14/cisco-cuts-nearly-4000-jobs-to-spend-more-on-ai-reports-record-quarterly-revenue/
