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Bay Area tech stalwart to lay off about 4,000 employees

The Bay Area telecommunications technology giant Cisco Systems has confirmed that it will be conducting layoffs, despite what appears to be a strong showing in its latest fiscal quarter.

A spokesperson for Cisco, headquartered in San Jose, confirmed a report from the Silicon Valley Business Journal that the local stalwart would be cutting about 5% of its staff — more than 4,000 employees. (According to a July 2022 SEC filing, Cisco employed 83,300 people.)

In addition to the layoffs, the company will “right-size” its real estate portfolio as part of a “limited business restructuring,” Cisco spokesperson Robyn Blum told SFGATE in an emailed statement Thursday morning.

But Blum emphasized that the layoffs were not about the size of its workforce. 

“This is not about reducing our workforce,” Blum said. “In fact we’ll have roughly the same number of employees at the end of this fiscal year as we had when we started.”

She added that the company will try to “place affected employees in … open roles.”  

She did not expand on what severance benefits affected employees will receive, but said that employees will receive “generous severance packages” and “job placement services.”

These layoffs come at a particularly troubling time for tech, when even the largest companies have been forced to course correct after a pandemic boom time. Salesforce, Meta and the Elon Musk-run Twitter all reported layoffs over the past couple of months.

Cisco has been in the Bay Area since 1984, when it was first founded in San Francisco. At one point, it was the most valuable company in the world.

Read More: Bay Area tech stalwart to lay off about 4,000 employees

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