Cisco Cuts 4,000 Jobs to Invest in AI Amid Record Revenue

Technology giant Cisco Systems has announced plans to cut nearly 4,000 jobs, representing approximately 5% of its global workforce. This decision comes despite the company reporting record quarterly revenue and better-than-expected profits for its fiscal third quarter. CEO Chuck Robbins stated that the layoffs are part of a strategic effort to adjust the company's cost structure and redirect resources toward artificial intelligence and cybersecurity investments. The move aligns with a broader trend in the tech industry, where companies like Cloudflare and General Motors have recently reduced staff to prioritize AI capabilities despite strong financial performance. Cisco also aims to address ongoing security vulnerabilities in its routers and firewalls, which have been exploited by hackers, including incidents affecting U.S. government networks. While Robbins highlighted double-digit growth and strategic AI integration, public filings reveal he is slated to earn over $52 million in compensation for 2025. This marks the latest in a series of layoffs at Cisco, following thousands of job cuts in 2024 and additional reductions in 2025, signaling a significant shift in operational focus towards emerging technologies.