Cisco Cuts 4,000 Jobs to Fund AI and Cybersecurity Push Despite Record Quarterly Revenue

Cisco is eliminating nearly 4,000 positions — approximately 5% of its global workforce — to restructure its cost base and redirect investment toward artificial intelligence and cybersecurity, the networking giant announced alongside better-than-expected fiscal third-quarter results.

CEO Chuck Robbins described the company as achieving record revenue and double-digit growth, while framing the redundancies as a strategic shift toward embedding AI across the organisation. The move follows a pattern seen across the tech industry, with Cloudflare and General Motors also citing AI priorities when announcing recent cuts despite strong financial performance.

Cisco’s cybersecurity investment comes as the company contends with a series of serious vulnerabilities in its routers and firewalls that have been exploited by hackers to infiltrate corporate and US government networks. A separate data breach affecting customer personal information occurred in 2025.

The latest cuts mark Cisco’s third significant round of redundancies since 2024, during which it shed thousands of additional roles. Robbins, whose 2025 compensation was reported at more than $52 million, did not address whether executive pay would be adjusted alongside the workforce reductions.

Need Deeper Intelligence on the AI Market?

AI Insider's Market Intelligence platform tracks funding rounds, competitive landscapes, and technology trends across the global AI ecosystem in real time. Get the data and insights your organization needs to make informed decisions.

Related Articles

a computer circuit board with a brain on it
Top 20 AI Vertical Workflow App CEOs You Need to Know in 2026

Artificial intelligence is rapidly moving beyond general-purpose chatbots and into industry-specific software that automates entire business processes. Known as vertical workflow applications, these platforms are designed

Claude’s Paying Consumer Base Grows 75% in 2026 as Anthropic Closes Gap With ChatGPT

Anthropic’s Claude is gaining significant ground with paying consumers, according to credit card transaction data from Indagari, which analyses anonymised spending patterns across approximately 28

ai materials
Unconventional AI Unveils Oscillator-Based Architecture Promising 1,000x Inference Efficiency

Unconventional AI, a startup founded by Naveen Rao, formerly head of AI at Databricks, has released its first AI model and an accompanying research paper

Stay Updated with AI Insider

Get the latest AI funding news, market intelligence, and industry insights delivered to your inbox weekly.

$ 0 M

Seed round tracked

Gitar — Code Validation

Get the Weekly Briefing

Funding analysis, market intelligence, and industry trends delivered to your inbox every week.

Need bespoke intelligence?

Our team combines real-time data with decades of sector experience to guide your decisions.

Subscribe today for the latest news about the AI landscape