Cisco Layoffs

Networking giant Cisco said on May 13, 2026 that it would eliminate fewer than 4,000 jobs, less than 5% of its workforce, while reprioritizing investment toward artificial intelligence. CEO Chuck Robbins told employees that 'companies that will win in the AI era will be those with focus, urgency and discipline.' The company is shifting resources into high-demand areas including silicon, optics, security and AI tools for employees, while facing intensifying competition and a global component shortage. Notifications to affected staff began May 14. Cisco said it would provide pro-rated fiscal 2026 bonuses, placement services and a year of complimentary Cisco U courses and certifications. The cuts were announced alongside record fiscal third-quarter revenue of $15.8 billion, up 12% year over year.

Reason: Reprioritizing investment toward AI (silicon, optics, security)

Source: blogs.cisco.com

Cisco notified 221 Bay Area employees of permanent layoffs on August 14, 2025, with terminations taking effect October 13. The cuts fell hardest on software engineers, who accounted for 157 of the 221 positions, concentrated at the company's Milpitas office; the remaining 64 roles were eliminated in San Francisco. The reductions came days after Cisco reported its strongest quarterly numbers in recent memory, including $14.7 billion in Q4 revenue, an 8% year-over-year gain, and $56.7 billion for fiscal 2025. The company's AI infrastructure services segment generated $2 billion in revenue, more than double its original target. CEO Chuck Robbins credited "accelerated innovation and solid execution" for the results but did not address the layoffs directly in public statements. The August cuts are the latest in a multi-year restructuring; Cisco eliminated roughly 6,000 positions in 2024 and has cut nearly 2,900 Bay Area jobs since 2022.

Reason: Ongoing restructuring toward AI infrastructure

Source: sfchronicle.com

Cisco disclosed a workforce reduction affecting its Milpitas, CA operations in August 13, 2025. Approximately 157 roles were eliminated.

Reason: Layoff Permanent

Cisco disclosed a workforce reduction affecting its San Francisco, CA operations in August 13, 2025. Approximately 64 roles were eliminated.

Reason: Layoff Permanent

Cisco announced in August 2024 that it would cut about 5,600 jobs, roughly 7% of its workforce. It was the second round of the year, following roughly 4,000 cuts in February. The company said the move would free it to invest in growth priorities such as AI and security while driving greater efficiency, even though it had just reported its second-strongest year on record at nearly $54 billion in revenue. Among the affected teams were parts of its Talos security research unit. Employees were notified after a roughly month-long delay.

Reason: Refocusing investment on AI and security; greater efficiency

Source: techcrunch.com

Cisco announced 4,250 job cuts in February 2024, equal to 5% of its global workforce, citing falling product orders and a strategic shift toward higher-growth markets. Order volumes had dropped roughly 20% year-over-year in the prior fiscal quarter, as large customers worked through backlogs of equipment purchased in 2023. CEO Chuck Robbins pointed to AI infrastructure and Ethernet networking for cloud providers as the areas the company wanted to prioritize, and the restructuring came weeks before Cisco closed its $28 billion acquisition of Splunk in March 2024. The move drew attention because Robbins had told CNBC just days earlier that he did not want to cut staff in favor of AI, preferring engineers to "innovate faster and be more productive." Specific severance terms were not disclosed publicly.

Reason: falling product orders, strategic reorientation toward AI and higher-growth markets

Source: cnbc.com

Cisco disclosed a workforce reduction affecting its SF Bay Area operations in September 17, 2023. Approximately 350 roles were eliminated.

Source: marketwatch.com

Cisco disclosed a workforce reduction affecting its SF Bay Area operations in November 16, 2022. Approximately 4,100 roles were eliminated.

Source: bizjournals.com