Cisco Systems, the tech giant known for its networking equipment and software, has announced another round of layoffs that will impact hundreds of employees in the Bay Area. This move is part of a global workforce reduction of 7%, which translates to approximately 5,900 jobs worldwide. The layoffs are scheduled to take effect on November 15, leaving many workers facing an uncertain future.
The company’s decision to cut jobs comes as it shifts its focus towards faster-growing technology sectors such as artificial intelligence (AI) and cybersecurity. Cisco has already invested $1 billion in AI-focused tech startups, including companies like Cohere, Mistral, and Scale, as it aims to develop reliable AI products. Additionally, the company has recently announced a partnership with Nvidia to develop infrastructure for AI systems.
SFChronicle reports that the layoffs will affect a total of 842 jobs in the Bay Area, with 563 positions being cut at Cisco’s headquarters in San Jose, 145 in Milpitas, and 134 in San Francisco. These job losses are part of a broader trend in the Bay Area’s tech sector, which has seen a decline in employment in recent months. In August, the South Bay lost 600 overall nonfarm payroll jobs, while the San Francisco metro area shed 400 jobs. In contrast, the East Bay added 1,800 jobs during the same period.
Siliconvalley reports that Cisco’s latest round of layoffs is not an isolated event. In 2022, the company has cut a total of 2,649 jobs in the Bay Area, according to its WARN filings with the state Employment Development Department. Other tech companies in the region have also been slashing jobs, with IBM cutting 112 positions (58 in San Francisco and 54 in south San Jose’s Coyote Valley) and Advantest eliminating 88 jobs in Fremont. Since 2022, IBM has cut a total of 165 Bay Area jobs.
As Cisco and other tech companies continue to navigate the challenges of a rapidly evolving industry, the impact of these layoffs on the Bay Area’s economy remains to be seen. While the company’s focus on AI and cybersecurity may lead to future growth and innovation, the short-term effects on the lives of those affected by the job cuts cannot be ignored. Only time will tell how these developments will shape the future of the tech industry in the Bay Area and beyond.
