Technology giant Cisco has announced it will lay off approximately 5% of its workforce, or about 4,000 people, despite reporting quarterly earnings that exceeded expectations. The networking equipment manufacturer explained this move as a necessity to optimize its cost structure and invest in artificial intelligence and cybersecurity. This is reported by Techcrunch.com reports .
Cisco's decision aligns with a recent trend among technology companies. Previously, major firms like Cloudflare and General Motors also reduced their headcount despite strong financial performance. Cisco plans to increase investments in cybersecurity as the company grapples with security issues stemming from vulnerabilities in its routers and firewalls.
CEO Chuck Robbins wrote proudly on his blog about Cisco's record revenue and double-digit growth rates. At the same time, he emphasized that strategic investments in the use of artificial intelligence within the company would continue. However, the fact that Robbins is slated to receive over $52 million in compensation for 2025 is raising public questions.
This is not the first round of layoffs for Cisco in recent years. The company cut thousands of jobs twice in 2024, and another 150 positions were eliminated in 2025. So far, company representatives have not responded to questions regarding whether the CEO's salary might be reduced.
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