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

Tech giant Cisco plans to cut fewer than 4,000 jobs, or about 5% of its workforce, despite reports Better than expected profits and revenues In the third fiscal quarter.

The networking equipment manufacturer said it has reduced its headcount in order to change its “cost structure” and invest in artificial intelligence and cybersecurity.

Cisco’s decision follows a recent trend of technology companies increasingly citing the priority of AI spending as a reason to let employees go. Cloudflare and GM Both companies have laid off employees in recent days, despite reporting strong financial results.

Cisco said it plans to invest more in cybersecurity, as the company continues to struggle A large number to Security vulnerabilities In its routers and firewalls, which allowed hackers to break into the networks of its corporate customers, Including the US government. Cisco experienced last year as well Data breach In which customers’ personal information was affected.

in Blog post Published on Wednesday, Cisco CEO Chuck Robbins praised the company’s “record revenue” and “double-digit growth,” while acknowledging that the company was making strategic investments “in our employees’ use of AI across the company.”

According to To public filingsRobbins was scheduled to receive more than $52 million in executive compensation through 2025. A Cisco spokesperson did not respond to a request for comment or, for example, when asked by TechCrunch whether Robbins planned to reduce his compensation.

This is the latest round of job cuts at Cisco in recent years. The company laid off thousands of employees During two separate layoffs in 2024and 150 jobs cut In 2025.