Cisco Systems is set to close multiple San Jose offices and Splunk’s San Francisco headquarters, six months after acquiring the software analytics firm for $28 billion.
The company plans to relocate business units to Santana Row in West San Jose, where Splunk already maintains offices. This move includes shutting down four buildings within or near Cisco’s 13.3-acre San Jose campus, which comprises over 30 structures,according to a report from the San Jose Mercury News.
The consolidation is scheduled for later this month, accompanied by expansions and upgrades to the Santana Row facility.
A Cisco spokesperson explained the strategy to CRN, a media brand of The Channel Company: “We are bringing our Cisco and Splunk teams in the Bay Area closer together to drive greater collaboration, improve cost efficiencies within our real estate portfolio, and create an environment where our people can thrive and drive innovative solutions for our customers and growth for Cisco.”
The spokesperson added, “To do this, we are expanding, upgrading, and modernizing our Santana Row office, reducing square footage in our North San Jose complex, and moving San Francisco Splunk employees to the current Cisco office there.” Emphasizing the company’s commitment to the region, they noted, “We have deep roots in San Jose and San Francisco, and we look forward to offering our employees vibrant and engaging new workspaces designed for our future.”
In conjunction with the real estate consolidation, Cisco announced permanent layoffs affecting 842 employees, as part of a broader plan to reduce its global workforce by 7%, disclosed in August. According to a Worker Adjustment and Retraining Notification (WARN) notice processed in September, the layoffs impact 134 employees in San Francisco, 145 in Milpitas, and 563 at the San Jose headquarters. These job cuts are effective November 15.
For the fiscal year concluding on July 27, 2024, Cisco reported revenues of $53.8 billion, marking a 6% decrease compared to the previous year.
These strategic moves reflect Cisco’s efforts to optimize operations and integrate Splunk’s capabilities, aiming to enhance collaboration and efficiency within its Bay Area presence.