Major tech companies like Microsoft and Amazon have recently laid off employees by the thousands, with many job cuts linked to the growing use of artificial intelligence in the workplace.
Agentic AI capable of handling complex tasks with human-like precision and minimal oversight has accelerated fears of workforce reductions across the industry.
Cisco Systems, however, is signalling a different approach. Its chief executive, Chuck Robbins, told CNBC that the company is not planning to use AI adoption as a reason to shrink its workforce. “I don’t want to get rid of a bunch of people right now,” Robbins said when asked about the cost savings potential of agentic AI.
He stressed that engineers in particular remain crucial to Cisco’s competitive positioning. “I just want our engineers that we have today to innovate faster and be more productive. That gives us a competitive advantage,” he said. Robbins, however, acknowledged that this position may evolve as AI adoption deepens. “Most of my peers would suggest that they do expect to be hiring fewer people if we get this right,” he said, while noting that “it’s early.”
So far, Cisco’s caution around AI-driven layoffs has not slowed its momentum. The company beat both earnings and revenue expectations in the latest quarter and offered slightly higher guidance going forward.
At the same time, it has doubled down on AI infrastructure demand. Cisco has already more than doubled its original $1 billion AI infrastructure order target for fiscal 2025. In the fourth quarter alone, orders topped $800 million, driven largely by “webscale customers” such as Amazon, Meta Platforms, and Microsoft, which are rapidly expanding their AI capabilities.
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Cisco Systems, however, is signalling a different approach. Its chief executive, Chuck Robbins, told CNBC that the company is not planning to use AI adoption as a reason to shrink its workforce. “I don’t want to get rid of a bunch of people right now,” Robbins said when asked about the cost savings potential of agentic AI.
He stressed that engineers in particular remain crucial to Cisco’s competitive positioning. “I just want our engineers that we have today to innovate faster and be more productive. That gives us a competitive advantage,” he said. Robbins, however, acknowledged that this position may evolve as AI adoption deepens. “Most of my peers would suggest that they do expect to be hiring fewer people if we get this right,” he said, while noting that “it’s early.”
So far, Cisco’s caution around AI-driven layoffs has not slowed its momentum. The company beat both earnings and revenue expectations in the latest quarter and offered slightly higher guidance going forward.
At the same time, it has doubled down on AI infrastructure demand. Cisco has already more than doubled its original $1 billion AI infrastructure order target for fiscal 2025. In the fourth quarter alone, orders topped $800 million, driven largely by “webscale customers” such as Amazon, Meta Platforms, and Microsoft, which are rapidly expanding their AI capabilities.
