Cisco Systems is taking a unique approach to artificial intelligence adoption, with CEO Chuck Robbins focusing on boosting efficiency rather than reducing headcount. In contrast to major tech peers like Microsoft and Amazon, which have recently slashed thousands of employees, Cisco aims to leverage agentic AI to drive productivity gains.
Robbins stated that his goal is to enable existing engineers to innovate faster and be more productive, thereby gaining a competitive advantage. This approach differs from the trend seen in many other companies, where AI technology is being used to reduce labor costs.
Despite this contrast, Cisco’s latest quarterly earnings and revenue beats indicate that management’s direction is not hurting the company. The networking equipment provider more than doubled its original AI infrastructure order target for fiscal year 2025, with webscale customers such as Amazon and Meta Platforms driving demand.
Cisco has initiated a position in mid-July and has since made two more buys on the promise of how the company can help its customers with AI. Director of portfolio analysis Jeff Marks stated that following orders is key to revenue growth, and the Club would buy more shares if the stock dips further below $69 per share.
The company’s security segment faced a setback, with the Splunk cybersecurity platform deal missing on revenue expectations. However, excluding federal government business, Cisco’s larger part of its security division grew by double digits. The stock has hit a 52-week high of $72.55 and closed at $68.50 on Thursday following a 1.5% decline.
Source: https://www.cnbc.com/2025/08/14/cisco-ceo-says-he-wants-to-use-ai-to-boost-efficiency-not-reduce-headcount.html