Cisco CEO Chuck Robbins takes a rejuvenating stance on AI, viewing it as a productivity booster rather than a job eliminator. While other tech giants link AI to layoffs, Cisco invested over $2 billion in AI infrastructure while maintaining its workforce. Think of it like giving carpenters better tools – they still need the skills, but now they can build faster. The company’s 8% revenue growth suggests this human-first approach to AI might be onto something special.
While many tech companies view artificial intelligence as a way to trim their workforce, Cisco’s CEO Chuck Robbins is taking a dramatically different approach. Unlike peers Microsoft and Meta, who’ve tied AI to layoffs, Robbins has explicitly stated that AI will be used to boost engineer productivity, not cut jobs. Think of it as giving engineers a high-powered assistant rather than a replacement.
This strategy seems to be paying off handsomely for Cisco. Their AI-related orders have blown past expectations, exceeding $2 billion in fiscal year 2025 – more than double their initial target. Just in the fourth quarter alone, they raked in $800 million from AI infrastructure orders, thanks to big-name customers like Amazon, Meta, and Microsoft. It’s like having the cool new gadget that everyone wants to get their hands on.
Sure, Cisco did have a 7% workforce reduction in 2024, but here’s the interesting part – it wasn’t about replacing humans with robots. Instead, they’re shifting resources toward AI investments and high-growth sectors. The company has redirected hundreds of millions of dollars into building AI infrastructure, including beefed-up data centers and hybrid cloud environments. The recent launch of their AI-native Hypershield system strengthens their commitment to integrating security across all network components.
What’s particularly invigorating about Robbins’ approach is how he frames AI as a tool for empowerment rather than replacement. Engineers are being equipped to innovate faster and tackle more complex challenges. Cisco’s partnership with Google and IBM aims to develop comprehensive upskilling programs for their workforce. It’s similar to giving a carpenter better tools – they still need the skill and creativity to build something amazing, but now they can do it more efficiently.
The results speak for themselves, with overall revenue jumping 8% to $14.7 billion, while earnings per share rose by 14%. Cisco’s strategy of using AI to enhance rather than replace human talent seems to be hitting the sweet spot. As other tech giants scramble to slash workforces, Cisco’s approach might just prove that when it comes to AI, augmentation beats automation every time.
