source: techcrunch ai: cisco cuts nearly 4,000 jobs to spend more on ai, reports ‘record quarterly revenue’
level: business
cisco is cutting fewer than 4,000 jobs, about 5% of its staff, even after reporting better-than-expected profit and revenue for its fiscal third quarter. the networking equipment maker said the layoffs will shift its cost structure to invest more in artificial intelligence and cybersecurity. this move follows a pattern among tech companies like cloudflare and general motors, which have also reduced headcount recently while citing ai priorities.
the company plans to boost cybersecurity spending as it deals with ongoing security flaws in its routers and firewalls. these vulnerabilities have let hackers breach corporate customer networks, including u.s. government systems. cisco also suffered a data breach last year that exposed customer personal information. ceo chuck robbins highlighted record revenue and double-digit growth in a blog post, while noting investments in employee use of ai across the company.
robbins was set to earn over $52 million in executive compensation for 2025. a cisco spokesperson did not comment on whether he would reduce his pay. this is the latest in a series of job cuts at cisco, following thousands of layoffs in 2024 and 150 in 2025. the company is reallocating resources toward ai and security as it faces both competitive pressures and the need to protect its infrastructure.
why it matters: the layoffs show how even profitable tech firms are restructuring workforces to prioritize ai investment, a trend that could reshape hiring and skills demand in the industry.
source: techcrunch ai: cisco cuts nearly 4,000 jobs to spend more on ai, reports ‘record quarterly revenue’