Cisco is cutting nearly 4,000 jobs (about 5% of its workforce) to reallocate spending toward AI and cybersecurity, even as the company reports record quarterly revenue and double-digit growth. CEO Chuck Robbins framed the layoffs as a strategic shift in cost structure. The move follows similar AI-driven workforce reductions at Cloudflare and General Motors. Cisco has also faced ongoing security vulnerabilities in its routers and firewalls, including breaches affecting U.S. government networks, adding pressure to invest more in security. Robbins was set to earn over $52 million in executive compensation in 2025; Cisco did not respond to questions about whether he would reduce his pay.
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