Technology leader Cisco is planning to reduce its workforce by less than 4,000 jobs, about 5% of its total staff, even after reporting higher-than-expected profits and revenue for its fiscal third quarter.
The company, known for its networking equipment, is adjusting its workforce to restructure its costs and allocate more resources towards AI and cybersecurity.
Cisco’s decision aligns with a recent tech trend where companies prioritize AI investment as a reason for layoffs. Both Cloudflare and General Motors have also recently laid off employees, despite posting strong financial results.
Cisco intends to increase its investment in cybersecurity as it addresses numerous security vulnerabilities in its routers and firewalls that have been exploited by hackers to access corporate networks, including those of the U.S. government. The company also suffered a data breach last year affecting customer information.
In a blog post on Wednesday, Cisco CEO Chuck Robbins highlighted the company’s record revenue and significant growth, noting strategic investments in AI usage across the company.
Public filings indicate Robbins was set to earn over $52 million in executive compensation in 2025. A Cisco spokesperson declined further comment beyond Robbins’ statement or confirm any plans regarding Robbins’ compensation reduction when approached by TechCrunch.
This represents the latest series of job cuts at Cisco. The company conducted layoffs affecting thousands in 2024 and eliminated another 150 positions in 2025.