AI NewsCisco cuts nearly 4,000 jobs to spend more on AI, reports ‘record quarterly revenue’
Cisco cuts nearly 4,000 jobs to spend more on AI, reports ‘record quarterly revenue’
10:44 PM IST · May 14, 2026

Technology giant Cisco is cutting fewer than 4,000 jobs, or around 5% of its workforce, despite reportingbetter-than-expected profit and revenuein its fiscal third quarter. The networking equipment maker said it reducing its headcount in order to change its “cost structure” and invest in AI and cybersecurity. Cisco’s decision follows a recent trend of tech companies increasingly citing a priority on AI spending as a reason to let employees go.CloudflareandGeneral Motorshave both laid off staff in recent days, despite reporting strong financial results. Cisco said it plans to invest more in cybersecurity, as the company continues to contend witha slewofsecurity vulnerabilitiesin its routers and firewalls that have allowed hackers to break into the networks of its corporate customers,including the U.S. government. Cisco last year also experienceda data breachin which customers’ personal information was affected. Ina blog postpublished Wednesday, 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.” Accordingto public filings, Robbins was slated to earn more than $52 million in executive compensation during 2025. When reached by TechCrunch, a Cisco spokesperson did not comment beyond Robbins’ statement, or say, when asked, if 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 employeesduring two separate layoffs in 2024, andcut 150 jobsin 2025.
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