Tag: California

  • Paramount Skydance and Warner Bros. Discovery Clear Major Hurdle with 12-State Settlement

    Paramount Skydance and Warner Bros. Discovery Clear Major Hurdle with 12-State Settlement

    Paramount Skydance has reached a settlement with California and 11 other states that had sued to block its proposed $110 billion acquisition of Warner Bros. Discovery, removing a significant antitrust obstacle in the United States. The deal, which could reshape Hollywood, still faces other legal challenges.

    Key Settlement Terms

    According to a source familiar with the matter, the settlement includes the establishment of independent editorial boards for CNN and CBS. Additionally, Paramount would face a $30 million penalty for each film shortfall against its commitment to release 30 movies annually. The agreement also helps Paramount avoid a $7 million daily fee owed to Warner Bros. shareholders for every day the transaction remains unfinished after September 30.

    Background of the Lawsuit

    A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit in July to block the transaction. The states argued that the merger could reduce competition and create a media company with greater power to raise prices across movies and television. The settlement resolves these concerns for the involved states, but the Writers Guild of America has separately sued to stop the deal, citing potential pay cuts and worsened working conditions for writers.

    Global Regulatory Status

    Antitrust regulators in the European Union and Britain have already cleared the acquisition. With the 12-state settlement, Paramount Skydance has cleared a major U.S. legal hurdle as it moves toward completing the merger. The proposed combination would bring together two of Hollywood’s biggest entertainment businesses amid ongoing industry transformation in film, television, and streaming.

    Neither Paramount Skydance nor Warner Bros. Discovery immediately responded to requests for comment on the settlement.

  • Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco is cutting 471 positions across three California offices as part of a broader restructuring initiative announced in May. The layoffs affect employees in San José, Milpitas and San Francisco, according to notices filed with the California Employment Development Department.

    The networking and cybersecurity giant previously stated it would eliminate fewer than 4,000 jobs worldwide, representing less than 5% of its workforce. The latest filings offer granular detail on the California roles included in that plan.

    Layoffs Spread Across Bay Area Offices

    Cisco will eliminate 236 positions in San José, 154 in Milpitas and 81 in San Francisco. Employees received notice on May 14, with terminations scheduled to begin July 13. Some affected workers may leave within 13 days of that date.

    The reductions are permanent, as stated in the company’s Worker Adjustment and Retraining Notification letters. California law mandates at least 60 days’ notice before a large layoff or facility closure.

    Cisco declined to provide additional information beyond the May restructuring announcement, which the company described as an effort to lower costs in certain areas while reallocating resources toward targeted investments.

    CEO Chuck Robbins told employees that Cisco expects to benefit from AI growth but reaching that goal requires “making hard decisions — about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

    Software Engineering Roles Hit Hardest

    The layoffs span departments including software development, product management, design and business operations. Software engineers represent the largest single group, with 56 positions eliminated: 34 in Milpitas, 19 in San José and three in San Francisco. Additionally, 39 software engineering technical leader positions will be cut, with 27 in Milpitas.

    Other affected roles include 17 engineering product managers, 15 software engineering leaders, 12 directors of software engineering, 12 engineering program managers, nine directors of product management and eight business operations managers. Seven site reliability engineers, seven program managers and seven software quality assurance engineers are also included.

    A Cisco business partner executive described the cuts as a familiar pattern, calling it “the regular Cisco cadence” before quarterly earnings announcements. Cisco did not confirm that assessment.

    AI Investment Rises Amid Broader Tech Layoffs

    The layoffs come as Cisco posts stronger financial results: quarterly revenue of $15.8 billion, its highest for a fiscal third quarter, and net income up 35% to $3.4 billion. The company markets its networking products as critical AI infrastructure, with demand for data centers and AI computing systems boosting spending on networking and cybersecurity.

    Nevertheless, many tech firms are cutting staff while increasing AI investment. Meta, Snap, Block, Oracle and Amazon have all announced job cuts this year, with some executives linking workforce changes to automation and AI tools.

    US technology companies announced 123,653 job cuts from January to May, a 66% increase from the same period in 2025, according to Challenger, Gray & Christmas. The firm noted that AI was cited more often than any other reason for layoffs, though it questioned whether AI alone explains the broader trend.

    Cisco reported approximately 86,200 employees as of July 2025. Its planned global reduction of fewer than 4,000 positions would affect less than 5% of that workforce.