Technology giant Cisco is cutting less than 4,000 jobs or about 5% of its workforce despite reports Better than expected profits and revenues In its fiscal third quarter.
The networking equipment maker said it is reducing its workforce to change its “cost structure” and invest in AI and cybersecurity.
Cisco’s decision follows a recent trend of tech companies citing priority over AI spending as reasons to let go of employees. cloud flare And General Motors Despite reporting strong financial results, both have laid off employees in recent days.
Cisco said it plans to invest more in cybersecurity as the company continues to struggle an unarmed Of security vulnerabilities in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers, The US government is also involved. Cisco also experienced last year a data breach In which personal information of customers was affected.
In a blog post Published on Wednesday, Cisco Chief Executive Chuck Robbins praised the company’s “record revenue” and “double-digit growth” while acknowledging that the company was making strategic investments “in the use of AI by our employees across the company.”
According for public filingRobbins was expected to earn more than $52 million in executive compensation through 2025. Asked by TechCrunch whether Robbins planned to reduce his compensation, a Cisco spokesperson did not respond to a request for comment.
This is the latest round of job cuts at Cisco in recent years. The company fired thousands of employees During two separate layoffs in 2024And 150 jobs cut In 2025.
