Cisco cuts nearly 4,000 jobs to spend more on AI, reports 'record quarterly revenue'
TechCrunch • • business
Key Points:
- Cisco is cutting fewer than 4,000 jobs, about 5% of its workforce, despite reporting better-than-expected profit and revenue in its fiscal third quarter.
- The job reductions aim to reshape Cisco's cost structure and increase investments in AI and cybersecurity.
- The move aligns with a broader tech industry trend of prioritizing AI spending even amid strong financial results, as seen with companies like Cloudflare and General Motors.
- Cisco plans to enhance its cybersecurity efforts in response to recent vulnerabilities and data breaches impacting its customers, including U.S. government networks.
- CEO Chuck Robbins highlighted record revenue and growth while emphasizing strategic AI investments, with no comment on his $52 million executive compensation for 2025.