Cisco 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' | TechCrunch Source: [https://techcrunch.com/2026/05/14/cisco-cuts-nearly-4000-jobs-to-spend-more-on-ai-reports-record-quarterly-revenue/](https://techcrunch.com/2026/05/14/cisco-cuts-nearly-4000-jobs-to-spend-more-on-ai-reports-record-quarterly-revenue/) In Brief Posted: 7:01 AM PDT · May 14, 2026 **Image Credits:**Kent NISHIMURA / Getty ImagesTechnology giant Cisco is cutting nearly 4,000 jobs, or around 5% of its workforce, despite reporting[better\-than\-expected profit and revenue](https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2026/m05/cisco-reports-third-quarter-earnings.html)in its fiscal third quarter\. The networking equipment maker said it is 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\.[Cloudflare](https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high/)and[General Motors](https://techcrunch.com/2026/05/11/gm-just-laid-off-hundreds-of-it-workers-to-hire-those-with-stronger-ai-skills/)have 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 with[a slew](https://techcrunch.com/2026/02/26/cisco-says-hackers-have-been-exploiting-a-critical-bug-to-break-into-big-customer-networks-since-2023/)of[security vulnerabilities](https://techcrunch.com/2025/12/17/cisco-says-chinese-hackers-are-exploiting-its-customers-with-a-new-zero-day/)in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers,[including the U\.S\. government](https://techcrunch.com/2025/11/13/cisa-warns-federal-agencies-to-patch-flawed-cisco-firewalls-amid-active-exploitation-across-the-us-government/)\. Cisco last year also experienced[a data breach](https://techcrunch.com/2025/08/05/hacker-used-a-voice-phishing-attack-to-steal-cisco-customers-personal-information/)in which customers’ personal information was affected\. In[a blog post](https://blogs.cisco.com/news/our-path-forward)published Wednesday, Cisco’s chief executive Chuck Robbins touted the company’s “record revenue” and “double\-digit growth,” while acknowledging that Cisco was making strategic investments “in our employees’ use of AI across the company\.” According[to public filings](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000858877/000085887725000150/csco-20251027.htm#i58ade4dd9cc34ac19560239caca63338_437), 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 employees[during two separate layoffs in 2024](https://techcrunch.com/2024/09/17/ciscos-second-layoff-of-2024-affect-thousands-of-employees/)and[cut over 150 jobs](https://www.sdxcentral.com/news/cisco-announces-layoffs-days-after-ceo-said-it-wont-cut-jobs-in-favor-of-ai/)in 2025\. ### Newsletters Subscribe for the industry’s biggest tech news ## Related ## Latest in Security