Cisco Lays Off 4,000 Employees to Invest in AI

Cisco, the technology giant, recently announced the elimination of nearly 4,000 jobs, representing about 5% of its workforce. This decision comes despite exceptional financial results in the third fiscal quarter, with profits and revenues exceeding expectations.

The network equipment manufacturer explained that this workforce reduction aims to adjust its cost structure and redirect investments toward strategic areas such as artificial intelligence (AI) and cybersecurity. This trend is not isolated, as other tech companies like Cloudflare and General Motors have also recently made layoffs, despite solid financial performances.

Cisco emphasized its intention to increase investments in cybersecurity, a crucial area as the company continues to face security vulnerabilities. These flaws have allowed hackers to infiltrate the networks of its clients, including those of the U.S. government. Last year, Cisco also fell victim to a data breach, compromising the personal information of its customers.

In a blog post published Wednesday, Cisco CEO Chuck Robbins highlighted the company's "record revenues" and "double-digit growth." He also mentioned Cisco's strategic investments in the use of AI by its employees across the company.

According to public documents, Chuck Robbins is expected to receive over $52 million in executive compensation by 2025. When asked by TechCrunch, a Cisco spokesperson declined to comment beyond Robbins' statements and did not specify whether a reduction in Robbins' compensation was being considered.

These layoffs are part of a series of workforce reductions at Cisco in recent years. The company had already laid off thousands of employees during two rounds of layoffs in 2024 and had cut 150 jobs in 2025.