Technology giant Cisco is cutting fewer than 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 would cut 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 the company is making strategic investments in “employee use of AI across the company.”
Robbins was scheduled to earn more than $52 million in executive compensation in 2025, according to public filings. A Cisco spokesperson did not respond to TechCrunch’s request for comment on 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 job cuts in 2024, laying off thousands of employees, and cutting 150 jobs in 2025.
