Silicon Valley expected to lose 1,500 jobs

Despite hiring boom, cutbacks jolt Cisco and other tech firms “Today’s market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we’ve seen in our history.”

SAN JOSE — Despite record levels of tech employment fueled by a hiring boom, employment cutbacks have jolted workers at Cisco and other tech firms in Silicon Valley, reductions that combined would erase about 1,500 jobs.

Cisco Systems confirmed Monday evening that it has formally notified state labor officials about roughly 900 job cuts in San Jose.

“Today’s market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we’ve seen in our history,” Robyn Blum, a spokeswoman for Cisco, said in comments emailed to this newspaper.

Separately, Ericsson has filed an official notice with the state Employment Development Department for cuts totaling 435 jobs associated with the permanent closure of facilities in San Jose.

Micrel, which in August 2015 was bought by Arizonabased Microchip Technology amid a painful consolidation of the semiconductor industry, has filed a notice for job cuts totaling 195.

The EDD filings gave an effective date of Aug. 18 for the Cisco layoffs, Sept. 28 for the Micrel cutbacks and Oct. 21 for the Ericsson layoffs.

Cisco’s restructuring will eliminate up to 5,500 jobs, which represents about 7 percent of the company’s worldwide workforce.

“Consistent with our culture, we will treat those leaving Cisco with respect and offer them support through the transition,” Blum said.

The surge in tech hiring has been robust enough in recent years that the Bay Area now has a record number of technology jobs, hitting levels that top even the record levels of the dotcom era. But layoffs don’t contradict the overall trend of rising technology employment throughout Silicon Valley and nearby areas, said Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy.

“Tech is a dynamic industry, and that dynamism makes the Bay Area the capital of technology,” Levy said. “There is a lot of expansion and there are also some companies that lose out and companies that are forced to adapt. That means lots of growth and lots of change.”