Cisco is firing over 200 employees in the US
What's the story
Cisco, the California-based tech giant, has announced a fresh round of layoffs affecting its Bay Area workforce. The decision comes just days after the company reported higher revenue figures for its fourth quarter and fiscal year. According to filings with California's Employment Development Department, Cisco will lay off 221 employees from its Milpitas and San Francisco offices.
Layoff details
Majority of job cuts in Milpitas office
The affected employees were informed about their impending layoffs on August 14, with the terminations set to take effect on October 13. The majority of the job cuts, 157 positions, mostly in software engineering will be made at Cisco's Milpitas office. Meanwhile, the San Francisco office will let go of 64 employees as part of this latest round of layoffs.
Revenue report
Layoffs come on the heels of strong earnings report
Cisco's fourth-quarter earnings report showed a revenue of $14.7 billion, an 8% jump from the same period last year. For the entire fiscal year 2025, the company reported a revenue of $56.7 billion, up 5% from last year. The financial report also highlighted Cisco's AI infrastructure which generated $2 billion in revenue for the fiscal year, double its $1 billion goal.
AI discussion
AI's role in workforce changes
In an interview with CNBC, Cisco CEO Chuck Robbins addressed the impact of AI technology on the company's workforce. He said he doesn't want to let go of a lot of people or engineers right now but wants them to innovate faster and be more productive. He also hinted that if AI continues to progress at Cisco, the company might hire fewer employees in the future.