Cisco sold a handful of buildings at its Silicon Valley headquarters, continuing a shift of employees and their working locations within the networking giant’s sprawling campus.

The Mercury News reported that Cisco sold four buildings to real estate firm South Bay Development for $63 million in cash. The deal, which was filed with the Santa Clara County Recorder’s Office on Dec. 19, included buildings at 260, 300, and 350 East Tasman Drive; a building at 3750 Zanker Road; and two parking garages in the area.

The deal does provide Cisco with the right-of-first-refusal to buy back the 300 and 350 East Tasman Drive buildings.

The report indicated that the buildings were locations that Cisco exited in 2024 as part of a broader campus relocation plan designed to move employees closer to colleagues from its Splunk cybersecurity division. That division, which Cisco acquired for $28 billion in early 2024, somewhat underperformed during Cisco’s most recent fiscal quarter, drawing a blunt view from CEO Chuck Robbins.

“None of us are happy about where we are right now, let me be clear about that,” Robbins said of Cisco’s security results. “But we think that it'll continue to accelerate through the year, and it'll come out of the year at a much higher rate. And then I think the normalization of this sort of mix-shift is probably gonna take us four quarters to get to where the year-over-year comparisons are sort of apples-to-apples on the mix side. … We're going to just give you as much transparency as we possibly can.”

Cisco scales down headcount

Cisco earlier this year cut 221 jobs from a pair of San Francisco Bay Area locations, including 157 positions at a location in Milpitas, and 64 positions at a location in San Francisco. Those jobs included junior positions as well as executives with VP titles.

Those cuts came on the heels of Cisco CEO Chuck Robbins telling CNBC that he didn’t see the networking giant using AI as an excuse to reduce headcount.

"I don't want to get rid of a bunch of people right now," the CEO told CNBC, instead suggesting he wants the company’s engineers to “innovate faster and be more productive.”

AI was among the reasons Cisco cited for cutting 7% of its workforce last August, a decision CFO Scott Herren suggested at the time was more akin to “a reallocation versus a headcount savings.”

Those cuts followed a 5% reduction of Cisco’s global workforce in February 2024, a restructuring move the vendor suggested at the time would maximize shareholder returns.