Cisco cuts nearly 4,000 jobs to spend more on AI, reports ‘record quarterly revenue’
Cisco is laying off nearly 4,000 employees, about 5% of its workforce, to redirect capital toward AI and cybersecurity investments.Summary
Cisco has announced a workforce reduction of approximately 4,000 employees, representing 5% of its staff, despite posting strong fiscal third-quarter financial results. The company stated that these cuts are necessary to restructure costs and prioritize strategic investments in artificial intelligence and cybersecurity.
This decision aligns with a broader industry trend where tech companies are trimming payrolls to fund AI development even amidst profitable quarters. Additionally, Cisco is focusing on cybersecurity to address recent vulnerabilities in its hardware. While CEO Chuck Robbins celebrated record revenue and double-digit growth, the company faced scrutiny regarding executive compensation following the announcement of these layoffs.
(Source：TechCrunch)