Technology giant Cisco is trimming its workforce by almost 4,000 employees, or around 5% of its staff, in a bid to invest more in artificial intelligence and cybersecurity. The move comes despite reporting better-than-expected profit and revenue for the third fiscal quarter.

The company’s chief executive, Chuck Robbins, touted record revenue but acknowledged that Cisco is strategically investing in AI across its operations. This follows a recent trend among tech companies like Cloudflare and General Motors, who have also recently reduced staff while reporting robust financial results.

Cisco has been grappling with a series of security breaches, including one last year where customer data was compromised, highlighting the urgency for increased cybersecurity measures. The company plans to bolster its efforts in this area as it continues to face significant security challenges, particularly given its role in protecting corporate and government networks.

Despite these financial successes, Cisco’s top exec is set to pocket over £35 million in compensation by 2025, raising questions about whether the company’s priorities align with those of its employees. This latest round of job cuts comes after previous rounds in 2024 and a smaller reduction in 2025.