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Cisco lays off 4,000 workers despite record revenue, shifting focus to AI and cybersecurity

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Cisco cuts 4,000 workers despite record revenue, shifting focus to AI and cybersecurity

Cisco has announced plans to cut nearly 4,000 jobs, or roughly 5% of its global workforce, even as the networking giant posts better-than-expected profit and revenue for its fiscal third quarter. The company says it needs to restructure its cost base to pour more resources into artificial intelligence and cybersecurity.

This decision places Cisco among a growing list of tech firms that are prioritizing AI spending while trimming headcount. Recently, both Cloudflare and General Motors have laid off employees despite strong financial performances. The trend signals a broader shift in how technology companies allocate capital.

Why Cisco is cutting jobs despite record revenue

Cisco reported what it called “record quarterly revenue” and “double-digit growth” in its latest earnings. However, the company is still moving forward with a significant reduction in staff. The networking equipment maker explained that it needs to adjust its “cost structure” to free up funds for strategic investments.

According to CEO Chuck Robbins, the company is making targeted investments “in our employees’ use of AI across the company.” In a blog post, Robbins highlighted the strong financial results while acknowledging the need for change. The layoffs are part of a broader effort to streamline operations and focus on high-growth areas.

Cisco’s AI and cybersecurity push

A major driver behind the job cuts is Cisco’s ambition to expand its presence in cybersecurity. The company has been grappling with a series of security vulnerabilities in its routers and firewalls. These flaws have allowed hackers to breach the networks of corporate clients, including the U.S. government.

Last year, Cisco also suffered a data breach that exposed customers’ personal information. Investing in cybersecurity is therefore not just a growth opportunity but a defensive necessity. The company aims to strengthen its product offerings and restore trust among its client base.

For more insights on how tech giants are reshaping their strategies, check out our article on AI investment trends in the tech industry.

Executive compensation questioned amid layoffs

While thousands of employees face job losses, Cisco’s top executive is set to earn a substantial package. According to public filings, CEO Chuck Robbins is slated to receive more than $52 million in executive compensation during 2025. When asked whether Robbins plans to reduce his own pay, a Cisco spokesperson declined to comment beyond the CEO’s earlier statement.

This disparity has sparked criticism, as it echoes similar situations at other tech companies where executives earn millions while workers are let go. The move raises questions about corporate priorities and fairness in compensation structures.

A history of job cuts at Cisco

This latest round of layoffs is not an isolated event. Cisco has reduced its workforce multiple times in recent years. In 2024, the company conducted two separate layoffs that affected thousands of employees. Earlier in 2025, it cut over 150 jobs as part of ongoing restructuring efforts.

Building on this pattern, the current cuts suggest that Cisco is undergoing a fundamental transformation. The company is moving away from its traditional hardware-centric model toward software, services, and AI-driven solutions. This shift requires different skill sets, which may explain the repeated workforce reductions.

To understand how other companies are navigating similar transitions, read our analysis on tech industry layoffs and restructuring strategies.

What this means for the tech industry

Cisco’s decision underscores a broader trend: even profitable tech companies are cutting jobs to fund AI initiatives. This creates a paradox where strong financial results coexist with significant layoffs. Employees in traditional roles, such as hardware engineering or sales, may find themselves at risk as companies pivot toward AI and cybersecurity.

On the other hand, demand for AI specialists and cybersecurity experts is surging. Cisco’s investment in these areas could create new opportunities for skilled professionals. However, the immediate impact is painful for the nearly 4,000 workers who will lose their jobs.

For more context on the evolving job market, see our guide on AI-related career paths and skills in demand.

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CyberSecurity

Itron Cyber Attack: What the Utilities Tech Firm’s Breach Means for the Industry

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Itron Cyber Attack: What the Utilities Tech Firm’s Breach Means for the Industry

Itron, a global provider of technology solutions for the utilities industry, has publicly disclosed a cybersecurity breach. The company, which specializes in products and services for energy and water resource management, revealed the incident in a filing with the US Securities and Exchange Commission (SEC) on April 24. This Itron cyber attack has raised concerns across the critical infrastructure sector.

According to the 8-K form, an unauthorized third-party actor breached Itron’s internal IT systems. Upon discovering the activity, the company immediately activated its cybersecurity response plan. It also launched a comprehensive investigation with the help of external advisors to assess, mitigate, and contain the breach.

How Itron Responded to the Cybersecurity Breach

As part of its immediate response, Itron proactively notified law enforcement authorities. The company confirmed that it has since taken steps to fully remediate and remove the unauthorized activity from its systems. Furthermore, Itron stated that no subsequent unauthorized access has been observed within its corporate systems.

Importantly, the company noted that no unauthorized activity was detected in the customer-hosted portion of its systems. This means that day-to-day business operations continued unaffected in all material respects. The incident did not significantly disrupt the company’s ability to serve its utility clients.

Financial Impact and Insurance Coverage

Itron also addressed the financial implications of the breach. The company expects a significant portion of the direct costs incurred to be reimbursed by its insurers. This should help limit the overall financial impact of the incident. However, the firm is still evaluating what legal filings and regulatory notifications may be required.

At this stage, Itron believes the incident has not had, and is not reasonably likely to have, a material impact on the company. This is a positive sign for investors and stakeholders, but the broader utilities cybersecurity breach landscape remains a concern.

Why the Itron Cyber Attack Matters for the Energy Sector

Itron’s role in the utilities industry makes this breach particularly noteworthy. The company provides critical technology for energy and water resource management. A successful attack on such a supplier could potentially affect multiple utility providers downstream. For more on protecting critical infrastructure, read about best practices for utilities cybersecurity.

Therefore, this incident serves as a stark reminder that supply chain vulnerabilities are a growing threat. Even if the breach was contained quickly, it highlights the need for robust security measures across all tiers of the energy sector. Building on this, companies must regularly audit their third-party vendors and ensure compliance with industry standards.

Lessons Learned from the Itron Security Incident

The Itron case underscores several key takeaways. First, rapid detection and response are critical. The company’s activation of its cybersecurity plan and engagement with external advisors helped limit damage. Second, transparency with regulators and law enforcement is essential. The SEC filing provides a clear timeline of events and actions taken.

Finally, the incident reinforces the importance of cyber insurance. Itron’s expectation of reimbursement from insurers shows that financial preparedness can mitigate long-term costs. However, no amount of insurance can replace a strong security posture. For more insights, check out how to prevent supply chain cyber attacks.

What’s Next for Itron and the Utilities Industry?

Itron is currently evaluating its legal and regulatory obligations. The company intends to take appropriate action based on its review and findings. Meanwhile, the utilities sector watches closely. This Itron cyber attack could prompt stricter cybersecurity requirements for vendors serving critical infrastructure.

In conclusion, while Itron appears to have managed the incident effectively, the event is a wake-up call. Energy and water utilities must prioritize cybersecurity at every level. The stakes are simply too high to ignore. For a deeper dive, explore our guide on cybersecurity compliance for energy companies.

Image credits: Itron / Mayy Contributor / Shutterstock.com

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Russian government hackers target Signal accounts in spyware campaign: researcher reveals how

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Russian government hackers target Signal accounts in spyware campaign: researcher reveals how

Earlier this year, Donncha Ó Cearbhaill, a security researcher at Amnesty International, received a suspicious message on his Signal account. The message claimed to be from “Signal Security Support ChatBot” and warned of suspicious activity that could lead to a data leak. It demanded a verification code to prevent further access. Ó Cearbhaill, a veteran spyware investigator, instantly recognized this as a phishing attempt. But instead of ignoring it, he turned the tables and launched his own investigation into what turned out to be a widespread campaign by Russian government hackers targeting Signal accounts.

This is not just another phishing story. It is a case study in how state-backed actors exploit trust in encrypted messaging apps to steal sensitive information. Ó Cearbhaill shared his findings exclusively with TechCrunch, revealing the scale and sophistication of the operation. In this article, we break down how the attack worked, who was targeted, and what you can do to protect your Signal account.

How the phishing attack on Signal accounts worked

The hackers impersonated Signal’s official support team, sending messages that warned of fake security threats. The goal was simple: trick victims into entering a verification code that would link their Signal account to a device controlled by the attackers. This technique, known as “device linking,” allows hackers to read all messages and access contacts without needing to crack encryption.

Ó Cearbhaill noted that the attackers used a tool called “ApocalypseZ” to automate the process. This system enabled them to target thousands of users simultaneously with minimal human oversight. The interface and codebase were in Russian, which aligns with previous warnings from CISA, the UK’s National Cyber Security Centre, and Dutch intelligence, all of which attributed similar campaigns to Russian government hackers.

Who was targeted in this Russian hacking campaign?

Ó Cearbhaill discovered that he was one of more than 13,500 targets. The list included journalists he had worked with, as well as a colleague at Amnesty International. He believes the hackers used a “snowball hypothesis” — compromising one victim and then using their contact list to find new targets. “I am convinced I became a target because I was likely in a group chat with someone who got hacked,” he said.

German news magazine Der Spiegel reported that the same group compromised several high-profile politicians in Germany. This highlights the broad scope of the campaign, which targets not only security researchers but also journalists, activists, and political figures. The attackers translated victim chats into Russian, further confirming their state-sponsored nature.

How the researcher turned the tables on the attackers

Instead of panicking, Ó Cearbhaill used his expertise to trace the attack back to its source. He declined to reveal all his methods, fearing it would tip off the hackers. However, he shared that he identified the ApocalypseZ system and monitored the campaign in real time. “Having the attack land in my inbox was too good an opportunity to pass up,” he told TechCrunch.

He also warned that the attacks are ongoing, meaning the total number of targets is likely much higher than the 13,500 he observed earlier this year. He expects the hackers to avoid targeting him again, but he remains vigilant. “I welcome future messages, especially if they have zero-days they would like to share,” he joked, referring to unknown security flaws.

Protecting your Signal account from phishing attacks

If you are a Signal user, you can take immediate steps to defend against similar attacks. The most important measure is enabling Registration Lock. This feature requires a PIN to register your phone number on a new device, blocking hackers from hijacking your account even if they trick you into sharing a verification code.

Additionally, never share verification codes with anyone, even if they claim to be from Signal. The app’s official support team will never ask for such information. Always verify the sender’s identity before responding to security alerts. For more tips, check out our guide on how to secure your Signal account.

The bigger picture: Russian government hackers and encrypted apps

This campaign is part of a broader trend of state-backed actors targeting encrypted messaging platforms. Signal, known for its strong privacy protections, is a prime target because it is used by journalists, activists, and government officials. The Russian hacking group behind this attack has been linked to previous operations against Ukrainian military personnel and dissidents.

As Ó Cearbhaill’s investigation shows, even experienced security researchers can become targets. The key is to stay informed and use available security features. By enabling Registration Lock and remaining cautious of phishing attempts, you can significantly reduce your risk. For more on this, read our analysis of state-sponsored phishing campaigns.

In conclusion, the campaign against Signal users by Russian government hackers is a stark reminder that no app is immune to targeted attacks. However, with the right precautions, you can protect your account and your data. Stay alert, stay safe.

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US Sanctions Target Cambodian Scam Network Leaders in Crackdown on Crypto Fraud and Human Trafficking

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US Sanctions Target Cambodian Scam Network Leaders in Crackdown on Crypto Fraud and Human Trafficking

The United States has imposed sanctions on a Cambodian scam network accused of orchestrating large-scale cryptocurrency fraud and human trafficking. The Office of Foreign Assets Control (OFAC) recently named Senator Kok An among 29 individuals and organizations allegedly involved in schemes that defrauded American victims of millions of dollars.

These operations center on scam compounds across Cambodia, many embedded within casinos and commercial buildings. Victims are approached through social engineering tactics, including romance-based outreach and fraudulent investment offers, before being persuaded to transfer digital assets to platforms controlled by attackers.

How the Cambodian Scam Network Operates

Authorities say these campaigns rely on trust-building tactics that evolve over time. Once a relationship is established, victims are guided to fake investment platforms that mimic legitimate services, where deposited funds are quickly diverted. This Cambodian scam network has been linked to significant financial losses for American citizens.

US government estimates show that at least $10 billion was lost by Americans to scams based in Southeast Asia in 2024, marking a 66% year-over-year increase. Individual losses have in some cases reached millions of dollars. The scale of these operations highlights the growing threat of cyber-enabled fraud in the region.

Human Trafficking and Coercion

Beyond financial crime, the network is reportedly linked to widespread human trafficking. Individuals are often recruited with false job offers, only to be coerced into scam operations once inside these compounds. Victims have reported confiscated passports, physical abuse, and strict daily quotas for contacting targets.

Many facilities are tied to casino operations, which authorities say help process and obscure illicit financial flows. Kok An’s business interests, including hospitality and security services, are alleged to support these sites. Associated operators manage additional compounds where similar abuses have been reported, including unlawful detention and violence.

US Enforcement Actions Against the Network

The sanctions were coordinated with a broader law enforcement effort involving the Department of Justice (DoJ), the Federal Bureau of Investigation (FBI), and the US Secret Service (USSS). Recent actions tied to the investigation include seizure of 503 domains linked to fraudulent crypto platforms, disruption of a messaging app used to recruit trafficking victims, and criminal charges against operators in Burma and Cambodia.

These measures aim to disrupt the financial and operational infrastructure behind cyber-enabled fraud while addressing the misuse of digital assets in global crime networks. For more on related trends, read about the UK crackdown on Chinese crypto marketplace funding Southeast Asia scam hubs.

Impact of Sanctions on the Cambodian Scam Network

The sanctions block any US-based assets linked to the designated parties and prohibit transactions involving US persons. This effectively freezes the financial resources of the Cambodian scam network, making it harder for operators to move money or recruit new victims.

However, experts warn that these networks are adaptable. Many have already shifted operations to other countries in Southeast Asia, such as Myanmar and Laos, where enforcement is weaker. Building on this, international cooperation remains critical to dismantling these criminal enterprises.

To protect yourself from similar scams, always verify investment platforms through official channels and be wary of unsolicited offers. Learn more about avoiding romance scams and cryptocurrency fraud prevention tips.

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