Cisco Cuts Thousands of Jobs Amid AI and Cybersecurity Focus

Cisco is cutting fewer than 4,000 jobs, or around 5% of its workforce, as the company shifts its focus to AI and cybersecurity investments, despite posting better-than-expected profits and revenue in its latest quarter.

The move follows a recent trend of tech companies prioritizing AI spending and cutting jobs.

Cloudflare and General Motors have both laid off staff in recent days, citing a focus on AI spending despite strong financial results.

Cisco plans to invest more in cybersecurity, as the company continues to contend with a slew of security vulnerabilities in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers, including the U.S. government.

In a blog post, Cisco's chief executive Chuck Robbins touted 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 public filings, Robbins was slated to earn over $52 million in executive compensation during 2025. A Cisco spokesperson did not return a request for comment on whether Robbins plans 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 2024, and cut 150 jobs in 2025.

Cisco's decision to prioritize AI and cybersecurity investments has raised questions about the company's commitment to its workforce, particularly given the recent trend of tech companies cutting jobs despite strong financial results.

The move also highlights the growing importance of AI and cybersecurity in the tech industry, as companies increasingly prioritize investments in these areas to stay competitive.

"We are making strategic investments in our employees’ use of AI across the company," Robbins said in the blog post. "This includes investing in new technologies and processes that will help our employees work more effectively and efficiently."

The company's focus on AI and cybersecurity is likely to have significant implications for its workforce, particularly in the areas of development and research.

• Cisco plans to invest more in cybersecurity to address the growing threat of security vulnerabilities in its routers and firewalls.
• The company will also focus on developing new AI-powered technologies to improve the efficiency and effectiveness of its employees.
• The move is likely to have significant implications for the company's workforce, particularly in the areas of development and research.