Cisco CEO: AI Pushes Unpatchable Tech Risk & Layoffs

Cisco CEO Chuck Robbins says the push for AI is creating security risks from unpatchable technology. He states that customers face growing exposure from equipment past its support date. Cisco is using Anthropic's Claude Mythos Preview internally to test code and speed up patches. This also encourages upgrading technology and infrastructure that can no longer be patched. The company has received $5.3 billion in AI infrastructure orders from hyperscalers over the past three quarters, now forecasting $9 billion for the full fiscal year. What's more, Cisco plans to lay off 4,000 employees, nearly 5% of its workforce. This move shifts investment toward high-demand areas like silicon, optics, security, and AI. Cisco expects to spend up to $1 billion on severance and other benefits through mid-2027. The bottom line is that the rapid advancement of AI is forcing major shifts in technology, security, and workforce allocation for large companies.