Cisco has announced it will lay off 471 employees across three offices in the San Francisco Bay Area as part of an ongoing workforce reduction effort. The affected locations include its offices in San José, Milpitas, and San Francisco, with job cuts spanning roles in software engineering, product management, design, business operations, and other departments.

The company, a major provider of networking equipment and services such as video conferencing and cybersecurity solutions, initially revealed plans in May to reduce its global workforce by fewer than 4,000 jobs—representing less than 5% of its total staff. The recent layoff notices filed with the California Employment Development Department provide more detail about the scale and scope of cuts within California.

Cisco’s restructuring comes amid rapid changes in the technology sector driven in part by advancements in artificial intelligence (AI). While the growth of AI has spurred significant investment in data centers and commercial real estate, it has also begun to reshape job requirements and workforce needs across the industry. Some technology companies attribute layoffs to evolving priorities tied to AI, as automation tools increasingly assist employees in generating code, written content, and other outputs.

However, industry observers remain divided on how prominently AI factors into workforce reductions globally. According to a report from Challenger, Gray & Christmas covering January through May, U.S. tech firms announced more than 123,000 job cuts—an increase of 66% compared to the same period in 2025. The report identified AI as a leading reason cited by companies for layoffs but noted that the widespread job losses predicted by some have not materialized.

Other major technology firms including Meta, Snap, Block, Oracle, and Amazon have also implemented significant staff reductions this year as part of cost-cutting and restructuring initiatives.

Despite the layoffs, Cisco has positioned itself as a key infrastructure provider for the AI era, reporting record revenues of $15.8 billion in its third quarter and a 35% year-over-year increase in net income to $3.4 billion. CEO Chuck Robbins, in communication with employees in May, emphasized the company’s focus on reallocating resources by reducing costs in some areas while prioritizing investments in AI-related capabilities and employee tools. Robbins acknowledged that achieving competitive advantage in the AI landscape requires "making hard decisions" concerning organizational structure and spending.

As of its 2025 annual report, Cisco had approximately 86,200 employees worldwide. The company did not provide further details about future restructuring plans beyond those outlined earlier this year.