Cisco To Consolidate Bay Area Offices, Shifting Employees To Splunk Office

The tech giant is reshuffling employees from its large headquarter campus in San Jose and employees at Splunk's headquarters in San Francisco. Cisco is also cutting 842 jobs in the Bay Area.

Tech behemoth Cisco Systems has plans to shutter several of its offices in San Jose as well as Splunk's San Francisco headquarters six months after closing its $28 billion megadeal of the software analytics specialist.

Cisco is shifting some of its business units to Santana Row, the residential and commercial district of West San Jose, in which Splunk already has an office presence. Cisco is also closing the doors on four of its office buildings at or near its 13.3-acre San Jose campus that includes more than 30 buildings, according to a report from the San Jose Mercury News.

The moves to trim down the company's physical office footprint are reportedly taking place later this month and Cisco is also planning to expand and upgrade the Santana Row office, reports said.

[Related: Cisco Completes $28 Billion Splunk Acquisition]

A Cisco spokesperson told CRN in an email that “we are bringing our Cisco and Splunk teams in the Bay Area closer together by consolidating office spaces in both San Jose and San Francisco. This will provide greater collaboration, increased innovation, as well as improve cost efficiencies within our real estate portfolio. We have deep roots in both San Jose and San Francisco, and we look forward to offering our employees vibrant and engaging workspaces designed for our future.”

On the heels of its real estate consolidation plans, Cisco has also revealed it has permanently laid off 842 employees as part of its plan to cut about 7 percent of its workforce, which the company announced in August. According to a Worker Adjustment and Retraining Notification (WARN) notice that was processed in September, the company is letting go 134 from its San Francisco office, 145 in Milpitas, California, and 563 that were based at the tech giant's San Jose, California headquarters. The layoffs will be effective on November 15, according to the notices.

Cisco Systems in August confirmed massive layoffs that would affect seven percent of its global workforce. The cuts would cost up to $1 billion, which the company said would mostly consist of severance, one-time termination benefits and other costs. Cisco will spend between $700 million and $800 million in the first quarter of its 2025 fiscal year, which ends in October.

For the company's 2024 fiscal year that ended July 27, Cisco pulled in $53.8 billion in revenue, down six percent year over year.