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. Cisco last year also experienced a data breach in which customers’ personal information was affected.

In a blog post published Wednesday, Cisco’s chief executive Chuck Robbins touted the company’s “record revenue” and “double-digit growth,” while acknowledging that Cisco was making strategic investments “in our employees’ use of AI across the company.”

According to public filings, Robbins was slated to earn more than $52 million in executive compensation during 2025. When reached by TechCrunch, a Cisco spokesperson did not comment beyond Robbins’ statement, or say, when asked, if Robbins plans to reduce his compensation.