Technology giant Cisco is cutting nearly 4,000 jobs, or about 5% of its workforce, despite reporting better-than-expected profits and sales in its fiscal third quarter.
The network equipment maker said it was cutting headcount in order to change its “cost structure” and invest in AI and cybersecurity.
Cisco’s decision follows a recent trend in which technology companies increasingly cite AI spending priorities as a reason to lay off employees. Cloudflare and General Motors have laid off employees in recent days despite reporting strong financial results.
Cisco said it plans to increase investment in cybersecurity as it continues to battle a slew of security vulnerabilities in routers and firewalls that allow hackers to penetrate the networks of business customers, including the U.S. government. Cisco also experienced a data breach last year that affected customers’ personal information.
In a blog post published Wednesday, Cisco CEO Chuck Robbins touted the company’s “record revenues” and “double-digit growth,” while acknowledging that Cisco is making strategic investments in “the use of AI for our workforce across the enterprise.”
Robbins was scheduled to earn more than $52 million in executive compensation in 2025, according to public documents. When contacted by TechCrunch, a Cisco spokesperson declined to comment beyond Robbins’ statement and did not answer a question about whether the company plans to reduce Robbins’ compensation.
This is the latest round of job cuts at Cisco in recent years. The company implemented two rounds of layoffs in 2024, laying off thousands of employees, and more than 150 in 2025.
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