Cisco Cuts Nearly 4,000 Jobs Amid AI Investment Spree
Tech giant Cisco is slashing its workforce by nearly 4,000 employees to focus on AI and cybersecurity while reporting record revenue.
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Technology powerhouse Cisco has announced a significant restructuring, cutting fewer than 4,000 jobs—around 5% of its current workforce—to streamline operations and invest more heavily in artificial intelligence (AI) and cybersecurity. Despite these job cuts, the company reported better-than-expected profit and revenue for its fiscal third quarter.
This move aligns with a broader trend among tech companies that are prioritizing AI investments even as they pare down staff numbers. Notable examples include Cloudflare and General Motors, which recently downsized despite robust financial performance.
Investment in Cybersecurity
Cisco's decision to cut jobs is part of a larger strategy aimed at enhancing its cybersecurity capabilities. The company has faced numerous security challenges over the past year, with critical vulnerabilities in routers and firewalls compromising network access for corporate clients, including government agencies.
Additionally, Cisco experienced a significant data breach last year, affecting customers' personal information. This ongoing struggle with security issues drives the need for increased investment and a leaner workforce focused on innovation.
CEO's Perspective
Cisco CEO Chuck Robbins highlighted the company’s “record revenue” and “double-digit growth,” while also stressing strategic investments in AI across the organization. In a blog post, Robbins acknowledged these changes but remained optimistic about future prospects. He specifically mentioned plans to enhance employee use of AI technologies to boost overall efficiency and innovation.
Executive Compensation
Cisco's top brass is not immune to this restructuring. According to public filings, Robbins is set to earn more than $52 million in executive compensation during 2025. When approached by TechCrunch, a Cisco spokesperson did not provide additional details on potential changes to Robbins' compensation.
Previous Layoffs
This latest round of job cuts at Cisco follows several rounds of restructuring over recent years. The company laid off thousands of employees during two separate layoffs in 2024 and cut an additional 150 jobs in 2025, signaling a continued trend towards operational efficiency.
