Despite quarterly revenues of $13.4 billion, a stock price that hit a five-year high last month and year-over-year growth of 6 percent, Cisco announced that it’s trimming its Silicon Valley engineering staff.
The company is shedding nearly 500 employees—397 at its San Jose headquarters and 91 in Milpitas. It marks the second round of layoffs at the San Jose-based networking hardware maker’s local offices in the past 12 months.
Cisco is Santa Clara County’s largest private-sector employer, with more than 10,000 local employees in multiple South Bay cities.
The company may be a casualty of Washington’s trade war with China, a warning that could ripple through Big Tech. In an earnings call on Wednesday, Cisco CEO Chuck Robbins cited problems problems with state-owned Chinese enterprises. “We’re being uninvited to bid,” Robbins said. “We’re not being allowed to even participate anymore.”
The layoffs were disclosed in a July 30 California Employment Development Department filing. Records show that the company trimmed 1,005 local jobs in 2014, 126 in 2015, 941 in 2016, 709 in 2017 and 462 in 2018.
Cisco’s stock plunged 8.6 percent to $46.25 on Thursday. It was its worst single-day drop since 2013, when its stock lost 11 percent of its value.
Other valley employers filing for layoffs included the San Jose subsidiary of Tennessee’s DBI Beverage Inc., Symantec Corporation of Mountain View, Riverbed Technology in Sunnyvale, Futurewei in Santa Clara, Covia Communities in Los Gatos.