Cisco is laying off nearly 4,000 employees, representing about 5% of its workforce, as the networking company restructures spending priorities toward artificial intelligence and cybersecurity despite posting stronger-than-expected financial results for its fiscal third quarter.
The company said the workforce reduction is intended to adjust its “cost structure” while supporting increased investment in AI technologies and cybersecurity operations.
Cisco’s decision adds to a growing pattern among technology companies that are reducing headcount while simultaneously increasing AI-related spending. In recent days, Cloudflare and General Motors have also announced layoffs despite reporting solid financial performance.
Cisco Continues Expanding Cybersecurity Spending
Cisco said part of its investment strategy will focus on cybersecurity as the company continues dealing with security issues affecting its networking products.
The company has faced multiple security vulnerabilities in its routers and firewalls that have allowed hackers to gain access to the systems of corporate and government customers, including networks connected to the U.S. government.
Last year, Cisco also disclosed a data breach that affected customers’ personal information.
In a company blog post published Wednesday, Cisco chief executive officer Chuck Robbins highlighted the company’s financial performance while referencing ongoing AI-related investments.
Robbins said Cisco delivered “record revenue” and “double-digit growth” during the quarter and added that the company was making strategic investments involving employee use of AI across the organization.
Layoffs Continue Despite Strong Financial Results
According to public filings, Robbins is expected to receive more than $52 million in executive compensation during 2025.
When contacted by TechCrunch, a Cisco spokesperson did not provide additional comments beyond Robbins’ published statement and did not answer questions about whether Robbins planned to reduce his compensation following the layoffs.
The latest job cuts continue a broader restructuring trend at Cisco over the past several years.
The company previously laid off thousands of workers across two separate workforce reductions during 2024 and eliminated more than 150 additional positions in 2025.
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