Cisco chops 488 jobs in its San Jose, Milpitas offices

Cisco booth
Cisco cuts 488 jobs from its San Jose and Milpitas, Calif. offices. (Monica Alleven/FierceWireless)

Cisco has axed 488 employees, according to a filing with the State of California.

The networking giant let 397 employees go from its San Jose campus, which serves as Cisco's headquarters, while another 91 workers in Cisco's Milpitas office also lost their jobs.

The effective date for the layoffs, according to a July 30 notice filed with the California Employment Development Department, was July 31. Employees that were not let go by that date would be out by Aug. 13, according to letters Cisco sent to state and local officials. The job cuts are permanent, according to Cisco's notice.


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Cisco's filings showed that the layoffs included software engineers, managers and technical leaders. Cisco laid off 462 employees from its San Jose and Milpitas locations in November of last year.

RELATED: Industry Voices—Raynovich: Service provider segment and China trade war weigh on Cisco

During Cisco's fourth quarter earnings call on Wednesday night, Cisco CEO Chuck Robbins said his company lowered its guidance going forward due to headwinds from the U.S./China trade wars, lower orders from emerging markets, and slower service provider revenues.   

Cisco has been transitioning from hardware-based revenues, mainly routers and switches, to subscription-based revenues over the past few years. On the earnings call, Robbins said Cisco's software subscriptions accounted for 70% of its total software revenue, which was an increase of 12 points year over year.

“Over the last few years, we have been transforming Cisco and driving innovation to deliver even greater value to our customers and partners,” a Cisco spokesperson said, according to a Cisco spokesperson. “It’s important that we make decisions to continually ensure that our investments and resources are aligned with strategic growth areas of the business and customer demands. As we realign some of our teams, we are working closely with impacted employees to match them where possible with the wide variety of roles currently open across Cisco.”

While Cisco has cut some jobs, it has nearly 1,900 current job openings, according to the spokesperson.

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