Cisco Cuts Jobs, CEO Robbins Set for $52M Pay

Cisco announced the layoffs as part of a plan to reshape its cost structure and fund priorities in artificial intelligence and cybersecurity. The company said reducing headcount will free capital for new AI tools and stronger security offerings. This follows a broader trend among technology firms that cite AI spending as a reason to trim staff despite strong financial results. Earlier in 2024 Cisco already reduced staff in two rounds, and another 150 positions were trimmed in 2025.

- The job reduction affects fewer than 4,000 employees, roughly 5% of the total workforce. - Cisco reported better‑than‑expected profit and revenue for Q3, which Robbins described as record revenue with double‑digit growth. - Robbins said the company is investing in employee use of AI across the organization, including training programs and new software licenses. - According to public filings, Robbins is slated to earn more than $52 million in executive compensation for 2025, comprising base salary, stock awards, and performance bonuses. - Cisco also noted it will increase investment in cybersecurity to address vulnerabilities in its routers and firewalls that have been exploited by hackers targeting corporate and government networks.

The cuts signal Cisco’s effort to reallocate resources toward high‑growth areas like AI and security, even while rewarding its top executive with a large pay package. Investors may watch whether the savings from reduced headcount translate into faster AI product rollouts and improved operating margins. Employees and analysts will likely monitor how the restructuring affects morale and the company’s ability to address recent security vulnerabilities in its routers and firewalls. The move also raises questions about the balance between cost cutting and executive compensation in the tech sector.