In Brief

Posted:

7:01 AM PDT · May 14, 2026

Image Credits: Kent NISHIMURA / Getty Images

Technology giant Cisco is cutting fewer than 4,000 jobs, or around 5% of its workforce, despite reporting better-than-expected profit and revenue in its fiscal third quarter.

The networking equipment maker said it reducing its headcount in order to change its “cost structure” and invest in AI and cybersecurity.

Cisco’s decision follows a recent trend of tech companies increasingly citing a priority on AI spending as a reason to let employees go. Cloudflare and General Motors have both laid off staff in recent days, despite reporting strong financial results.

Cisco said it plans to invest more in cybersecurity, as the company continues to contend with a slew of security vulnerabilities in its routers and firewalls that have allowed hackers to break into the networks of its corporate customers, including the U.S. government .…