Know-how large Cisco is slicing practically 4,000 jobs, or round 5% of its workforce, regardless of reporting better-than-expected revenue and income in its fiscal third quarter.
The networking gear maker mentioned it’s decreasing its headcount with the intention to change its “price construction” and put money into AI and cybersecurity.
Cisco’s determination follows a latest development of tech corporations more and more citing a precedence on AI spending as a cause to let workers go. Cloudflare and Common Motors have each laid off workers in latest days, regardless of reporting robust monetary outcomes.
Cisco mentioned it plans to take a position extra in cybersecurity, as the corporate continues to take care of a slew of security vulnerabilities in its routers and firewalls which have allowed hackers to interrupt into the networks of its company prospects, together with the U.S. authorities. Cisco final 12 months additionally skilled a data breach during which prospects’ private data was affected.
In a weblog submit revealed Wednesday, Cisco’s chief government Chuck Robbins touted the corporate’s “file income” and “double-digit progress,” whereas acknowledging that Cisco was making strategic investments “in our workers’ use of AI throughout the corporate.”
Based on public filings, Robbins was slated to earn greater than $52 million in government compensation throughout 2025. When reached by information.killnetswitch, a Cisco spokesperson didn’t remark past Robbins’ assertion, or say, when requested, if Robbins plans to scale back his compensation.
That is the newest spherical of job cuts at Cisco lately. The corporate laid off hundreds of workers throughout two separate layoffs in 2024 and reduce over 150 jobs in 2025.
