After Microsoft and Intel, now Cisco to layoff staff in its Bay Area office - here are the departments affected

Cisco layoffs 2025: In a move echoing recent actions by Microsoft and Intel, Cisco Systems is the latest tech giant to announce layoffs in the Bay Area, cutting 221 jobs across its Milpitas and San Francisco offices, as per a report.

Cisco To Cut 221 Jobs in October 2025

The layoffs, disclosed in California WARN filings on August 13, were followed by employee notifications a day later, with official terminations set for October 13, as reported by SFGATE. WARN documents are is a requirement by the state during mass layoffs of a firm, according to the report.

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Cisco Reports Strong Revenue Growth Despite Job Reductions

Despite strong financial results, including $14.7 billion in fourth-quarter revenue, which is an 8% increase from the same quarter last year and revenue for the 2025 fiscal year increased 5% from last year to $56.7 billion, Cisco is trimming its workforce yet again, as per the SFGATE report.

This is not the first time the San Jose-based technology giant has slashed jobs following strong earnings, according to the report. In September last year, the company laid off 840 employees across the Bay Area shortly after reporting $10.3 billion in annual profit, as reported by SFGATE.

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While the tech giant’s financial report also highlighted the firm’s AI infrastructure, which generated $2 billion revenue for the fiscal year, which was more than double its $1 billion goal, as reported by SFGATE. Cisco also revealed that it plans to expand its AI investments by next year but did not share details of any workforce reductions or financial difficulties, according to the report.

Which Roles and Departments Are Affected in Cisco Layoffs?

The most impacted location is Cisco’s Milpitas office at 560 McCarthy Blvd, where 157 positions will be eliminated, primarily in software engineering roles, SFGATE reported, citing the WARN filing with the California Employment Development Department. An additional 64 roles are being cut from the company’s San Francisco office on Terry A. Francois Blvd, as per the report.

Cisco May Hire Fewer People as AI Capabilities Grow

During an interview with CNBC on Thursday, CEO Chuck Robbins spoke about artificial intelligence technology in the firm’s workforce, as per the report.

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He said, “I don’t want to get rid of a bunch of people right now. I don’t want to get rid of engineers,” adding, “I just want our engineers we have today to innovate faster and be more productive and that gives us a competitive advantage,” as quoted by the SFGATE report.

However, Robbins pointed out that if AI keeps advancing at Cisco, the firm might possibly hire fewer workers, according to the SFGATE report.

Tech Industry Trend: AI Investment, Hiring Freezes, and Layoffs

Meanwhile, AI boom has impacted many company's workforce and some AI startups have even openly admitted to replacing human workers with AI technology, according to the report. Even tech giants such as Microsoft have joined the trend, with mass layoffs or slowed hiring as they spend more in AI investment, as per the SFGATE report.

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FAQs

Why is Cisco laying off employees now?
Despite strong revenue growth, Cisco is restructuring, which could be due to AI, but the exact reason is not kown, as per the SFGATE report.

How many people are being laid off in Cisco?
A total of 221 employees are affected, 157 in Milpitas and 64 in San Francisco.