<p id="speakable-summary" class="wp-block-paragraph">Technology giant Cisco is cutting nearly 4,000 jobs, or around 5% of its workforce, despite reporting <a href="https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2026/m05/cisco-reports-third-quarter-earnings.html" target="_blank" rel="noreferrer noopener nofollow">better-than-expected profit and revenue</a> in its fiscal third quarter. </p>
<p class="wp-block-paragraph">The networking equipment maker said it is reducing its headcount in order to change its “cost structure” and invest in AI and cybersecurity.</p>
<p class="wp-block-paragraph">Cisco’s decision follows a recent trend of tech companies increasingly citing a priority on AI spending as a reason to let employees go. <a href="https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high/" target="_blank" rel="noreferrer noopener">Cloudflare</a> and <a href="https://techcrunch.com/2026/05/11/gm-just-laid-off-hundreds-of-it-workers-to-hire-those-with-stronger-ai-skills/" target="_blank" rel="noreferrer noopener">General Motors</a> have both laid off staff in recent days, despite reporting strong financial results.</p>
<p class="wp-block-paragraph">Cisco said it plans to invest more in cybersecurity, as the company continues to contend with <a href="https://techcrunch.com/2026/02/26/cisco-says-hackers-have-been-exploiting-a-critical-bug-to-break-into-big-customer-networks-since-2023/">a slew</a> of <a href="https://techcrunch.com/2025/12/17/cisco-says-chinese-hackers-are-exploiting-its-customers-with-a-new-zero-day/" target="_blank" rel="noreferrer noopener">security vulnerabilities</a> in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers, <a href="https://techcrunch.com/2025/11/13/cisa-warns-federal-agencies-to-patch-flawed-cisco-firewalls-amid-active-exploitation-across-the-us-government/" target="_blank" rel="noreferrer noopener">including the U.S. government</a>. Cisco last year also experienced <a href="https://techcrunch.com/2025/08/05/hacker-used-a-voice-phishing-attack-to-steal-cisco-customers-personal-information/" target="_blank" rel="noreferrer noopener">a data breach</a> in which customers’ personal information was affected.</p>
<p class="wp-block-paragraph">In <a href="https://blogs.cisco.com/news/our-path-forward" target="_blank" rel="noreferrer noopener nofollow">a blog post</a> 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.”</p>
<p class="wp-block-paragraph">According <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000858877/000085887725000150/csco-20251027.htm#i58ade4dd9cc34ac19560239caca63338_437" target="_blank" rel="noreferrer noopener nofollow">to public filings</a>, 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.</p>
<p class="wp-block-paragraph">This is the latest round of job cuts at Cisco in recent years. The company laid off thousands of employees <a href="https://techcrunch.com/2024/09/17/ciscos-second-layoff-of-2024-affect-thousands-of-employees/" target="_blank" rel="noreferrer noopener">during two separate layoffs in 2024</a> and <a href="https://www.sdxcentral.com/news/cisco-announces-layoffs-days-after-ceo-said-it-wont-cut-jobs-in-favor-of-ai/" target="_blank" rel="noreferrer noopener nofollow">cut over 150 jobs</a> in 2025.</p>
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