Cisco Plans Nearly 4,000 Job Cuts While Pivoting Spending Toward AI and Cybersecurity

Cisco is cutting nearly 4,000 jobs, about 5% of its workforce, even as it reports what its chief executive describes as “record revenue” and “double-digit growth” in its latest quarter.

The networking giant said the layoffs are part of an effort to reshape its “cost structure” and redirect more spending into artificial intelligence and cybersecurity. The cuts come despite better-than-expected profit and revenue in Cisco’s fiscal third quarter, underscoring how major tech companies are using AI investment plans to justify downsizing.

Cisco framed the job reductions as a strategic move rather than a response to weak performance. The company said the headcount reduction will free up resources to fund AI-related initiatives and expand its cybersecurity efforts.

In a blog post published Wednesday, CEO Chuck Robbins highlighted Cisco’s “record revenue” and “double-digit growth,” while also pointing to “strategic investments” in how employees use AI across the company. Cisco did not provide further detail in the source material about which business units would be affected by the layoffs or which specific AI products or platforms the new spending will target.

The move places Cisco among a growing list of large companies that have announced job cuts shortly after reporting strong financial results, while emphasizing AI spending as a priority. Cloudflare and General Motors have both recently laid off staff despite solid performance, citing a need to redirect resources.

Security pressures and repeated layoffs

Cisco also plans to invest more heavily in cybersecurity as it continues to grapple with security issues in its core networking products. The company has faced a series of vulnerabilities in its routers and firewalls that have been exploited by hackers to break into customer networks, including those of the U.S. government, according to the source material.

In addition, Cisco experienced a data breach last year that affected customers’ personal information. The company did not elaborate in the cited material on the scope of that breach or which customers were impacted, but it has framed increased cybersecurity investment as a key part of its strategy going forward.

The new cuts add to a pattern of workforce reductions at Cisco in recent years. The company laid off thousands of employees during two separate rounds in 2024, and then cut more than 150 jobs in 2025. The roughly 4,000 positions now on the line mark another sizable reshaping of its global workforce as it adjusts spending priorities.

Executive pay is also drawing attention. Public filings show that Robbins was slated to receive more than $52 million in executive compensation during 2025. When asked by TechCrunch whether Robbins planned to reduce his compensation in light of the layoffs, a Cisco spokesperson declined to comment beyond the CEO’s published statement and did not answer that question.

Cisco has not, based on the available information, provided a detailed timeline for when the nearly 4,000 job cuts will take effect or which regions will be most affected.