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Cisco Systems has initiated another round of layoffs, eliminating 157 jobs across California, even as its chief executive Chuck Robbins recently dismissed fears of AI-fuelled workforce reductions, CRN reported.
The latest job cuts hit multiple Cisco sites, with the largest impact at its Milpitas campus. An additional 64 jobs are being cut in San Francisco, while employees at the company's Redwood City headquarters and its Pleasanton office are also affected.
The layoffs span multiple levels, including senior executives and vice-presidents.
The timing of the decision has raised eyebrows. Just last week, Robbins told CNBC that Cisco had no intention of leveraging artificial intelligence as a pretext for job cuts. “I don’t want to get rid of a bunch of people right now,” Robbins said, stressing that AI should make engineers “innovate faster and be more productive.”
However, the latest reductions mark Cisco's third major round of layoffs in less than a year.
The company slashed 5% of its global workforce in February 2024 and announced a further 7% cut in August 2024, both moves aimed at boosting shareholder value and redirecting resources toward AI-driven growth, the report added.
Adding to the fallout, Chicago-based law firm Strauss Borrelli has launched an investigation into whether Cisco complied with the Worker Adjustment and Retraining Notification (WARN) Act, which mandates 60 days' advance notice for mass layoffs.
The firm said it is probing whether affected employees received proper notice and are entitled to severance pay and benefits, the report added.
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Read MoreThe petitioners argue that such portrayals reduce advocacy to a commercial product and directly contravene the Bar Council of India (BCI) Rules.