Cisco is reportedly laying off nearly 4,000 employees as the company shifts more resources toward artificial intelligence infrastructure, software, and AI-driven networking technologies. The workforce reduction comes despite Cisco reporting record quarterly revenue, highlighting how major technology companies are restructuring operations to prioritize AI investments.
According to reports, the layoffs will affect approximately 5% of Cisco’s global workforce. The company stated that the restructuring is part of a broader strategy to streamline operations and redirect investments toward high-growth areas including AI infrastructure, cybersecurity, cloud networking, and enterprise software platforms.
At the same time, Cisco delivered strong financial results for its latest quarter. The company reported revenue of approximately $14.9 billion, marking a record quarterly performance and surpassing Wall Street expectations. Cisco also raised its full-year guidance, citing strong demand for networking equipment and AI-related infrastructure solutions.
Cisco executives emphasized that artificial intelligence is becoming a major growth driver for the company. CEO Chuck Robbins stated that AI-related product orders have already exceeded $1.5 billion, driven by growing demand from hyperscale data centers, enterprise AI deployments, and cloud infrastructure providers. The company has been aggressively expanding its AI networking portfolio to support high-performance computing environments used for generative AI workloads.
The restructuring also reflects broader changes occurring across the technology industry, where companies are increasingly using AI to automate workflows and improve operational efficiency while simultaneously investing heavily in AI infrastructure. Several large technology firms, including Cloudflare, Google, Microsoft, and Amazon, have recently announced layoffs alongside increased spending on AI systems and data center expansion.
Cisco has spent the last year accelerating its AI strategy through acquisitions and partnerships. The company recently completed its acquisition of Splunk and has been integrating AI-powered analytics, cybersecurity, and observability capabilities into its enterprise networking ecosystem. Cisco is also collaborating with AI infrastructure providers such as NVIDIA to develop networking solutions optimized for large-scale AI data centers.
The announcement has reignited debate around the long-term impact of AI on employment in the technology sector. While companies argue that AI investments are essential for future growth and competitiveness, critics warn that aggressive restructuring and automation could significantly reshape workforce dynamics across the global tech industry.
