Company severance · technology

Severance Pay at Cisco — 2026 Layoffs Guide

The figures below are drawn from public news reporting about its May 2026 layoffs (~4,000 roles, ~5% of staff). Severance packages vary by role, tenure, and date, change over time, and are not guaranteed. Use them as a negotiating benchmark, not a promise — and confirm anything specific directly.

On May 14, 2026, Cisco announced it was cutting nearly 4,000 jobs globally — approximately 5% of its workforce — alongside its fiscal Q3 2026 earnings. The company framed the cut as an AI-focused restructuring. CFO Mark Patterson stated the action was "not a savings-driven restructure" but a realignment toward silicon, optics, security, and AI. Cisco reported better-than-expected profit and revenue in the same quarter. Employee reports on The Layoff and Blind indicate packages for US employees below Job Grade 13 included a 60-day payroll continuation period plus four months of severance pay, a prorated bonus, outplacement services, one year of Cisco U access, and COBRA coverage. Individual packages vary by job grade and tenure — employees above JG13 reported different terms. Cisco set aside approximately $1 billion in charges to cover severance, benefits, and restructuring costs.

Cisco vs. typical tech severance

Cisco's reported package of four months pay plus one additional week per year of tenure beyond ten years is above the US tech industry baseline for mid-career employees. However, Cisco has run multiple layoff cycles — 2024 saw two rounds totaling roughly 9,600 jobs — and the company's legal team is experienced at structuring packages that meet obligations without exceeding them. Four months of severance is above market at the two-to-three year tenure range, but may be below market for long-tenured senior employees who could negotiate significantly more. The pro-rated bonus and outplacement services add real value beyond the headline cash figure. If you are above Job Grade 13, reported terms differ — confirm your specific package in writing before treating any communicated number as final.

Cisco (reported)Typical tech severance
Base severance4 months pay (below JG13) + 1 week per year over 10 yrs1–2 weeks per year of service
Notice period60-day payroll continuationWARN Act 60 days or pay in lieu
HealthcareCOBRA (duration not publicly specified)Often unsubsidized
BonusProrated annual bonusNot standard
Outplacement~3 months external placement servicesNot standard
Training1 year Cisco U accessNot standard

What Cisco Employees Should Know Before Signing

Cisco is headquartered in San Jose, California, with major US operations in Milpitas, San Francisco, Raleigh, and other cities. California employees have Cal-WARN protections requiring 60 days advance notice before mass layoffs. Cisco's disclosure of a 60-day payroll continuation period suggests the company is providing notice-equivalent pay — but whether this satisfies Cal-WARN depends on how and when notice was provided. If you received formal 60-day written notice on the day of your layoff meeting, confirm whether that notice was compliant before signing.

Cisco has gone through enough layoff cycles that it has established patterns. Employee reports consistently indicate the initial offer is not the final offer — Cisco's standard package is a starting position, and many employees have negotiated additional weeks of severance, extended healthcare, and bonus protection. The existence of a formula does not mean the formula is fixed.

If you are over 40, the OWBPA gives you 45 days to review your separation agreement (Cisco's 2026 cut is a group reduction) and 7 days to revoke after signing. If your paperwork indicates a shorter review period, that is a legal defect in the ADEA waiver, which is itself a negotiating point. Do not sign early.

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Cisco’s Layoff History — What It Means for Your Negotiation

Cisco cut roughly 4,000 jobs in February 2024 and another 5,600 in August 2024, and is now cutting another 4,000 in 2026. A company that runs layoff cycles this frequently has refined its severance structure to minimize cost while meeting legal obligations. That experience works against you if you accept the first offer without reviewing it. Employee forums document cases where negotiation resulted in 4–12 additional weeks of severance beyond the initial offer, plus extended healthcare and prorated bonuses. The calculator above will show you what the market says your profile is worth — that number is your starting point for any negotiation.

Sources & further reading

WARN Act Lookup →

Cisco layoffs — frequently asked questions

Cisco told me my package is standard and non-negotiable. Is that true?+

No. Cisco has a standard package, but "standard and non-negotiable" is an HR communication strategy, not a legal position. Cisco's own pattern across multiple layoff cycles shows that negotiation has resulted in additional weeks of pay, extended healthcare, and bonus protection for employees who pushed back. The existence of a policy does not mean it is a ceiling.

I’m a Cisco employee above Job Grade 13. My package seems different from what others are reporting. Why?+

Cisco's reported standard package applies to employees below JG13. Senior employees at higher job grades typically have different — and often more negotiable — terms. If your package does not include the four-month baseline or the prorated bonus others are reporting, review your employment contract and any existing severance policy you were entitled to under Cisco's Change in Control and Severance Policy.

Cisco gave me a 60-day notice period. Can I still work during that time?+

The 60-day payroll continuation during a WARN Act notice period is standard at Cisco. Whether you are expected to actively work during that period, or whether you are on garden leave, depends on what your specific notice communication says. Clarify this in writing with HR immediately — some employees have reported their system access being revoked during the notice period despite being on payroll.

Does Cisco enforce non-compete agreements?+

If you worked in California, Cisco's non-compete is unenforceable. California Business and Professions Code Section 16600 voids non-compete agreements against California employees with very limited exceptions. If you are in another state, the enforceability depends on state law — some states (like Texas and Florida) give employers more latitude. Review any non-compete clause with an employment attorney before signing if you are outside California.

Cisco announced $1 billion in restructuring charges. Does that mean they can afford to pay more?+

The restructuring charge is an accounting figure that covers severance, benefits, facilities costs, and other items — not a direct employee benefit pool. However, it does indicate Cisco anticipated significant severance costs, which means the company has budgeted for negotiated outcomes, not just minimum packages. This is relevant context if you choose to negotiate.

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Figures from public reporting and employee accounts of Cisco’s May 2026 layoffs; per-employee terms vary by job grade and tenure and were not uniformly disclosed. LayoffMath is not affiliated with Cisco. This page provides educational estimates only and is not legal advice. It does not create an attorney-client relationship. For advice specific to your situation, consult a licensed employment attorney.