With Cisco's strategic pivot toward AI and cybersecurity, many employees are preparing for potential workforce changes in 2025. While no official announcements have been made, understanding historical severance patterns can help you evaluate future packages. If you share your past severance data, you'll get early access to our comprehensive comparison database, helping you make informed decisions about your career trajectory.

Cisco Layoffs 2025: What We Know So Far

While Cisco hasn't made any official announcements about layoffs, industry analysts and internal discussions suggest potential changes ahead. Here's what we're tracking:

Timing and Scale

• When: February 2025 appears to be the focus of discussions, aligning with Cisco's mid-fiscal year when the company typically implements organizational changes.
• How Many: Estimates suggest thousands of positions could be affected. Previous restructuring impacted approximately 7% of the workforce, which may serve as a reference point.
• Regional Impact: Past patterns indicate a phased approach, with U.S. notifications typically preceding international changes by several weeks.

Target Areas

Internal discussions and industry analysis suggest these areas might see changes:

• Legacy technology divisions as Cisco accelerates its AI and cybersecurity investments
• Overlapping positions following the Splunk acquisition
• Support functions that may be consolidated or automated
• Product lines with declining market share

Historical Severance Analysis

Recent Package Components

Cisco's previous severance packages have shown consistent patterns, with several key components:

• Garden Leave: A 2-month period of continued employment without work obligations. During this time:
  • Full benefits continuation
  • Regular salary payments
  • Continued RSU vesting
  • Laptop retention for job search
  • Company email access
• Base Severance: 4 months of base salary paid as a lump sum after the garden leave period ends.
• Tenure Recognition:
  • 10+ years: Additional week per year
  • 20+ years: Two additional weeks per year
  • Example: A 15-year employee would receive 5 extra weeks on top of base severance
• Additional Benefits:
  • Full PTO payout at current rate
  • COBRA coverage subsidy (~2 months)
  • Career transition services including:
    • Resume review and optimization
    • Job search strategy sessions
    • LinkedIn profile consultation
    • Interview preparation
• Sales Compensation:
  • 80% of total target compensation
  • Commission pipeline closure
  • Quota relief considerations
• Equity and Stock:
  • Unvested RSUs typically forfeit on separation
  • ESPP contributions refunded
  • Vested options remain exercisable per plan terms

Analysis

Cisco's approach demonstrates a structured support system for departing employees, balancing immediate financial needs with transition assistance. The garden leave period, in particular, provides valuable time for job searching while maintaining full benefits.

Industry Comparison Analysis

Let's examine how Cisco's severance approach compares to industry peers:

Juniper Networks

• Financial Package:
  • 3 months base salary
  • Additional week per year after 5 years
  • Pro-rated bonus consideration
• Benefits: 3 months healthcare coverage
• Equity: Standard unvested RSU forfeiture
• Support: Basic internal career resources

Arista Networks

• Financial Package:
  • 2 months base salary lump sum
  • No documented tenure considerations
  • Variable bonus treatment
• Benefits: 2 months COBRA subsidy
• Equity: Standard forfeiture rules
• Support: Limited transition assistance

Palo Alto Networks

• Financial Package:
  • 4 months base salary
  • 2 weeks per year after 5 years
  • Bonus pro-ration
• Benefits: 4 months COBRA coverage
• Equity: Accelerated vesting provisions
• Support: Comprehensive outplacement services

Within the networking and security sector, Cisco's package remains competitive. The garden leave period sets it apart, though Palo Alto Networks edges ahead in equity treatment and healthcare coverage duration.

2025 Package Expectations

Based on historical patterns and industry trends, here's what employees might expect:

Notice and Transition

• 2-month garden leave period
• Full benefits and salary continuation
• System access retention for transition

Financial Components

• 4 months base salary severance
• Tenure-based additions:
  • 10+ years: +1 week per year
  • 20+ years: +2 weeks per year
• Full PTO payout
• COBRA subsidy coverage

Sales-Specific Elements

• 80% of total target compensation
• Commission calculations finalized
• Territory transition considerations

Support Services

• Professional career transition assistance
• Job search strategy development
• Networking opportunities
• Interview preparation resources

Moving Forward

While layoffs create uncertainty, being informed helps you make better decisions. The most effective way to evaluate and negotiate your package? Data-driven insights. That's why we encourage you to share your severance details, giving you access to our comprehensive comparison database while helping others in similar situations.

If you're evaluating a package, submit your offer on fired.fyi. Compare it against industry standards and understand your negotiating position. And while we provide extensive data and analysis, consulting an employment lawyer can help you understand the specific implications for your situation.

Remember: your skills and experience have value beyond your current role. The more we share information, the better equipped our community becomes to navigate career transitions successfully. By contributing to this knowledge base, you're not just helping yourself – you're helping build a more transparent tech industry where everyone can make informed career decisions.