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San Jose-based technology powerhouse Cisco has once again initiated a significant round of job cuts across its Bay Area operations, continuing a perplexing trend of announcing robust financial performance alongside substantial workforce reductions. This marks a familiar pattern for the tech giant, which has previously reported skyrocketing revenue figures just prior to employee terminations.
Official WARN filings with California’s Employment Development Department, dated August 13, confirm that Cisco plans to eliminate a total of 221 positions. These layoffs are concentrated at its Milpitas and San Francisco facilities. Employees received notification on August 14, with their employment terminations slated for October 13. The bulk of these reductions, impacting 157 roles, primarily within software engineering, occurred at Cisco’s Milpitas office at 560 McCarthy Blvd. An additional 64 positions will be cut from the company’s San Francisco office at 500 Terry A. Francois Blvd.
Notably, these job cuts coincide with the release of Cisco’s impressive fourth-quarter earnings. The report revealed $14.7 billion in revenue, marking an 8% increase year-over-year. For the entire 2025 fiscal year, the tech giant reported a robust $56.7 billion in revenue, climbing 5% from the prior year’s figures.
This pattern of layoffs following growth is not new for Cisco. Last September, the company made headlines for cutting 840 Bay Area jobs shortly after declaring a significant $10.3 billion annual profit, highlighting a recurring discrepancy between financial health and workforce stability.
Intriguingly, Cisco’s financial report also highlighted the booming success of its AI infrastructure, which generated an impressive $2 billion in revenue for the fiscal year – doubling its initial $1 billion target. The company affirmed its commitment to further AI investments in the coming year, yet no official statements directly linked these advancements to the recent workforce reductions.
Cisco CEO Chuck Robbins, in a CNBC interview on the day of the report, downplayed immediate job displacement due to AI. He stated, “I don’t want to get rid of a bunch of people right now. I don’t want to get rid of engineers.” Instead, Robbins emphasized leveraging AI to empower existing engineers for faster innovation and increased productivity. However, he also acknowledged that significant AI progress might lead to fewer future hires. Cisco declined to comment on the latest round of layoffs when approached by SFGATE.
This dynamic between technological advancement and job security isn’t unique to Cisco. The broader tech industry is witnessing a significant shift, with numerous AI startups openly exploring or implementing AI-driven automation as a replacement for human roles. Even established industry titans like Microsoft have adjusted their hiring strategies and, in some cases, initiated mass layoffs, citing increased investment in artificial intelligence as a key factor in their evolving operational strategies.