Major Tech Layoffs Hit Bay Area as Cisco and Oracle Cut 322 Positions

In a surprising move, Cisco and Oracle have announced plans to eliminate hundreds of jobs across the Bay Area, according to recent state filings. This comes at a time when both companies are reporting strong financial performance and significant investments in artificial intelligence.

Details of the Job Cuts

Cisco will be cutting 221 positions at its offices in Milpitas and San Francisco, effective October 13. The breakdown includes 157 jobs in Santa Clara County and 64 in San Francisco. Oracle is reducing 101 positions in Santa Clara on the same date, with all layoffs being permanent.

Strong Financial Backdrop

Despite these layoffs, both tech giants are thriving financially. Cisco reported fourth-quarter revenue of $14.7 billion, an 8% increase from the previous year, with annual revenue reaching $56.7 billion. Chuck Robbins, Cisco's chair and CEO, stated in an earnings release, "We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution."

Oracle also posted impressive numbers, with over $12 billion in profit for the last fiscal year.

History of Workforce Reductions

This is not the first time these companies have trimmed their workforces. Last year, Cisco cut more than 9,000 jobs in two rounds of layoffs, citing efficiency initiatives even during a record fiscal year. Oracle, which moved its headquarters from Silicon Valley to Austin in 2020 and is planning a relocation to Nashville, recently laid off 188 Bay Area workers and over 160 employees in Seattle.

AI Investments and Contradictions

For Cisco, these layoffs are particularly striking given its aggressive push into AI infrastructure, which generated over $2 billion in orders this year. Robbins emphasized in a CNBC interview that AI is intended to boost productivity, not reduce headcount, saying, "I don't want to get rid of a bunch of people right now. I just want our engineers to innovate faster and be more productive."

Neither company provided comments on the latest job cuts when requested.