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Spin This: Cisco To Fire 10,000

Tyler Durden's picture




 

A year after the outgoing secretary of the treasury top ticked the economy and ushered in QE 2 with his abysmal NYT op-ed "Welcome to the Recovery" it is only appropriate that we get news that Cisco is preparing to fire 10,000, or 14% of its entire workforce, over and above the number of people that the company said was going to be let go in May. "The cuts include as many as 7,000 jobs that would be eliminated by the end of August, said the people, who asked not to be identified because the plans aren’t final. Cisco, based in San Jose, California, is also providing early-retirement packages to about 3,000 workers who took buyouts, the people said. Cisco Chief Executive Officer John Chambers is slashing jobs and exiting less-profitable businesses as competitors such as Juniper Networks Inc. (JNPR) and Hewlett-Packard Co. (HPQ) take market share in Cisco’s main businesses with lower-priced, simpler products. Sales of Cisco’s switches and routers, which made up more than half of revenue last year, will continue to slip, said Brian Marshall, an analyst at Gleacher & Co." All in the name of the bottom line: "Eliminating jobs will help Cisco wring $1 billion in expenses in fiscal 2012, the company said in May. Cisco expects costs of $500 million to $1.1 billion in the fiscal fourth quarter as a result of the voluntary early retirement program, it said in a quarterly filing."

More on Cisco:

“We will provide additional detail on the cost reductions, including layoffs, on our next earnings call,” Karen Tillman, a spokeswoman for Cisco, said in reference to an earnings call scheduled for early August. She declined to discuss job cut figures.

The voluntary retirement packages included one year’s pay and medical benefits, and were offered to about 5,800 employees, two people said.

“The revenue trajectory hasn’t been where it should be,” Marshall, who has a “neutral” rating on the stock with a target price of $17, said in an interview. “The company is not staffed on an appropriate level. They simply have too many employees.”

Cisco said in May that it shuttered the Flip video-camera unit and cut 550 jobs. The company may eliminate more positions in the consumer-product unit, which makes Linksys home- networking equipment, Marshall said. Some investors have said the company should exit consumer products entirely to focus on traditional enterprise offerings such as routers and switches. Cisco’s equipment is used by corporate networks and telephone and Internet service providers to direct Web traffic.

Trimming about 5,000 jobs would reduce operating expenses by about $1 billion annually and boost 2012 earnings by about 8 percent, Marshall said.

We expect many other companies to follow
suit in order to eliminate even more "overhead", or as it is better
known, fat. And while S&P500 EPS may get a modest boost out of this
latest upcoming firing wave, it means that the next leg down in payrolls
is imminent.

 

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Mon, 07/11/2011 - 21:44 | 1446242 Arius
Arius's picture

paging LaVorgna ...paging...

Mon, 07/11/2011 - 21:48 | 1446254 Rahm
Rahm's picture

In unrelated news, 10k new applications submitted to graduate schools, hence another price increase in tuition!  Woo-hoo, GDP increase!

Mon, 07/11/2011 - 21:52 | 1446276 traderjoe
traderjoe's picture

Or applications to McDonalds.

Mon, 07/11/2011 - 23:01 | 1446517 Chuck Walla
Chuck Walla's picture

Grad schools will have more slots to fill.

Tue, 07/12/2011 - 00:39 | 1446766 Fukushima Sam
Fukushima Sam's picture

Cisco is full of fat and needs some cuts.  I work with them a lot and I guarantee that in most interactions 30% of the people there these days are useless idiots.  After they get past this cut it will end up being good for them, provided they actually make the right cuts...

Tue, 07/12/2011 - 08:07 | 1447192 Agent 440
Agent 440's picture

LOL Right cuts.... makes me think about these economists that can't shoot straight.

Tue, 07/12/2011 - 08:28 | 1447235 Flakmeister
Flakmeister's picture

As a rule of thumb, in any large organization, 30% of the people are idiots...

Tue, 07/12/2011 - 09:23 | 1447402 Gandalf6900
Gandalf6900's picture

 

You can make that 70% without a sweat

Wed, 07/13/2011 - 20:17 | 1454310 hannah
hannah's picture

the problem is that the 30% cut are the good people and the shite keep teir jobs.....

Mon, 07/11/2011 - 21:55 | 1446288 Jack Burton
Jack Burton's picture

 Good point! Whenever vast layoffs happen, the layed off are told to go to school and improve their skills! So Grad Schools will surely pick a few thousand former CISCO workers looking to upgrade their skills for jobs that probably won't exist.

Mon, 07/11/2011 - 22:59 | 1446506 Blorf
Blorf's picture

Or they can downgrade their skills from "network engineer" to "Chinese router assembly line worker" and take their place on the line for pennies an hour.

Tue, 07/12/2011 - 06:54 | 1447071 j0nx
j0nx's picture

Give this man a cookie for he knows of what he speaks.

This is what I call change you can believe in bitches. I love asking people in traffic with Obama stickers how that change is working out for them. Most look at me with a quizzical look on their face like they have no idea wtf I am talking about. Bahh bahhhh....

Tue, 07/12/2011 - 09:28 | 1447422 LFMayor
LFMayor's picture

I usually just pop them the sailor's farewell when I blow by...

Tue, 07/12/2011 - 08:39 | 1447257 Thomas
Thomas's picture

The economics of grad school is more subtle than that. Very few post masters candidates write checks and I can assure you that Universities are not going to scrape together more tuition and stipend packages. Expansion of graduate programs is not necessarily profitable (except MBA, LAW, and M-Eng.) The physical sciences surely will not expand.

Mon, 07/11/2011 - 22:11 | 1446351 FoodTiger
FoodTiger's picture

10K laid off to be replaced by bobble head H1B visa holders.

Mon, 07/11/2011 - 23:04 | 1446523 dark pools of soros
dark pools of soros's picture

yes so they can still have 8 of them on a conference call and the other 2 local engineers doing all the planning and work...  but hey, they don't mind writing up 5 forms of status updates and chart results of incomplete bullcaca

Tue, 07/12/2011 - 00:39 | 1446764 trav7777
trav7777's picture

...with all profits therefrom to support executive bonuses

Tue, 07/12/2011 - 01:15 | 1446813 Oh regional Indian
Oh regional Indian's picture

Hey! Hey now! Been to India FT? Hmmmmm?

That outsourcing thing is a curse. I know it first hand. LAbour cost arbitrage across national boundaries. That's workign well in the EU too eh?

But India? I'd say it's been just plain BAD for us.

Take those numb/dumb/crumb jobs back.

But your crack-loving bankers love the arb to much as well as the middle-class being made here now, soon to be sheared too.

Big picture FoodT, big picture. Don't be a hater.

ORI

http://aadivaahan.wordpress.com/2011/03/01/on-outsourcing-and-its-ills/

 

Mon, 07/11/2011 - 22:24 | 1446385 Hedge Jobs
Hedge Jobs's picture

paging HarryWanger is more like it! Where is that idiot, i have seen him around the site for ages? Wasnt he recomending everyone buy CSCO "for your kids" this time last year after their profit downgrade? He should be charged with child abuse.

Mon, 07/11/2011 - 22:37 | 1446421 Osmium
Osmium's picture

+1  Child abuse.  That's some funny stuf right there.

Tue, 07/12/2011 - 06:40 | 1447051 Zero Govt
Zero Govt's picture

Hamy has joined the ranks of rats leaving Obummas sinking ship... he was a paid shill of Obummas internet campaign but even he saw the light and couldn't push water uphill any longer

..so another winner (10,000 job losses) for Jobs Czar, Jeff Immelt. his expertise for the post presumably comes from sacking 34,000 of his own staff at GE ...wonder if he's considering his position too or will continue looking another usless Obumma jack-ass?

Tue, 07/12/2011 - 08:28 | 1447237 drswhaley
drswhaley's picture

So Chambers should be appointed to the blue ribbon panel set up by Immelt on jobs.  He is now more than qualified.  The real crime is that Chambers hasn't lost his job - stock has done nothing but he has managed to rape the company with his options pay package.

Mon, 07/11/2011 - 23:04 | 1446525 MGHJFHD
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Tue, 07/12/2011 - 02:46 | 1446896 Michael
Michael's picture

Read and make extraordinary comments. Please don't hock your wares, we're all full up here and it's not kosher. Thanks.

Tue, 07/12/2011 - 07:06 | 1447080 mick_richfield
mick_richfield's picture

Michael -- you're talking to a twenty-line Perl script. 

Mon, 07/11/2011 - 23:32 | 1446607 At120
At120's picture

Maybe they can work for McDonald's?  I hear they're hiring...

 

 

Tue, 07/12/2011 - 03:19 | 1446922 knowless
knowless's picture

that's what their website says, but I never got a call back..

Tue, 07/12/2011 - 06:58 | 1447073 j0nx
j0nx's picture

I have noticed a literal shit ton of white people working at my morning coffee McDonald's in the past year. For the 8 years prior to that the morning crew was almost entirely Hispanic but lately it's about half and half. Times must really be tough for some folks.

Mon, 07/11/2011 - 21:45 | 1446243 bob_dabolina
bob_dabolina's picture

Spun: 

That's 10,000 people that won't be laid off again. 

Mon, 07/11/2011 - 21:55 | 1446293 dlmaniac
dlmaniac's picture

No need to spin. Just re-use the old script: Bush's fault!!

Mon, 07/11/2011 - 22:04 | 1446308 bob_dabolina
bob_dabolina's picture

We can use Nancy Pelosi's crib notes. 

Seeing as unemployment benefits are the best way to stimulate the economy, we have 10,000 more reasons to be optimistic about this recovery.

"Unemployment benefits are creating jobs faster than practically any other program, House Speaker Nancy Pelosi claimed Thursday."

http://michellemalkin.com/2010/07/01/pelosi-unemployment-checks-best-way-to-create-jobs/            

And they can't figure out why the economy is suffering like it had chronic obstructive pulmonary disease.

Tue, 07/12/2011 - 08:30 | 1447241 rufusbird
rufusbird's picture

Damm, I like it...Next time anyone asks me where I work I am going to tell them I work for Nancy Pelosi...!

Tue, 07/12/2011 - 22:50 | 1450363 Mr. Lucky
Mr. Lucky's picture

That's another 10,000 on food stamps; and watching day time TV.  More bread and circus for the sheeple.

Mon, 07/11/2011 - 22:02 | 1446313 Hard1
Hard1's picture

Spin v2.0:  It will be weather related in next month's NFP number

Mon, 07/11/2011 - 22:24 | 1446338 berlinjames02
berlinjames02's picture

Who else remembers Chambers' interview on 60 Minutes wanting a 'tax holiday' to repatriate all that money so Cisco could create jobs?

If you don't remember it, here it is: http://www.cbsnews.com/video/watch/?id=7360936n

Did JC-superstar just play chicken with the government? Looks like only losers in that game are the 10,000 employees in San Jose.

Mon, 07/11/2011 - 22:42 | 1446444 sun tzu
sun tzu's picture

How would a tax holiday have saved those jobs? They were laid off due to competition from Juniper and HP

Tue, 07/12/2011 - 00:26 | 1446740 fonestar
fonestar's picture

Does this make my CCNA less valuable?

Mon, 07/11/2011 - 21:47 | 1446253 MarketTruth
MarketTruth's picture

Cisco is located in the Republik Of Kalifornia? That is a HUGE mistake.

Mon, 07/11/2011 - 22:59 | 1446507 LetThemEatRand
LetThemEatRand's picture

And now the tech jobs start to move overseas.  But keep blaming taxes instead of the ready availability of global cheap/slave labor due to "free trade" policies that were supposed to help the U.S. middle class.  

Mon, 07/11/2011 - 23:11 | 1446545 dark pools of soros
dark pools of soros's picture

hey, the easy way to take over a country..  just give them free food and rent and netflix and they'll never know that the 'outside' doesn't even use English anymore...eventually just chop them all up and make a new section in the Chinese buffet called 'american',,,  right next to the sweet & sour alley cat

Tue, 07/12/2011 - 01:23 | 1446824 Oh regional Indian
Oh regional Indian's picture

Your comment somehow reminds me of that Jim Carey movie, The Truman Show.

ORI

Tue, 07/12/2011 - 01:05 | 1446796 FinalCollapse
FinalCollapse's picture

So are Juniper and HP - their main competitors. Juniper is just a few miles away from Cisco.

 

Tue, 07/12/2011 - 08:33 | 1447242 rufusbird
rufusbird's picture

Exactly! If they would simply have annouced that they were moving to Wyoming, half the people would have quit and they would have saved a ton on severance pay!

Mon, 07/11/2011 - 21:48 | 1446258 infiniti
infiniti's picture

Is this the reason why ES plunged?

Mon, 07/11/2011 - 21:51 | 1446267 SloMoe
SloMoe's picture

No, that was me. I'll give you a heads up next time.

Mon, 07/11/2011 - 21:55 | 1446295 centerline
centerline's picture

Work for W&R?

Mon, 07/11/2011 - 21:49 | 1446264 SloMoe
SloMoe's picture

That's 10,000 people given the opportunity to re-optimize their job skills...elsewhere.

Mon, 07/11/2011 - 22:02 | 1446311 dwdollar
dwdollar's picture

Hell ya.  Those 50 year old Electrical Engineers will make great contributions as laborers rebuilding the nations infrastructure for government contractors using stimulus funds printed from nothing.

Mon, 07/11/2011 - 22:07 | 1446334 Manthong
Manthong's picture

Should be plenty of new positions for network experts in Obama's new Cyber Secretariat.

Mon, 07/11/2011 - 22:15 | 1446324 Protonrick
Protonrick's picture

double post. sorry 

 

Mon, 07/11/2011 - 22:04 | 1446325 Protonrick
Protonrick's picture

That's more'n half of last month's job creation. 

Crikey.

Mon, 07/11/2011 - 22:48 | 1446465 mayhem_korner
mayhem_korner's picture

Hey!  Maybe one of 'em can fill Geithner's chair.

Mon, 07/11/2011 - 23:50 | 1446669 Sabibaby
Sabibaby's picture

Better idea: 10,000 Treasury Secretaries are better than 1 plus they'll get .gov beni's!

Mon, 07/11/2011 - 21:51 | 1446269 nmewn
nmewn's picture

Less than expected ;-)

Mon, 07/11/2011 - 22:25 | 1446389 spekulatn
spekulatn's picture

Well done, nmewn.

Mon, 07/11/2011 - 22:27 | 1446394 nmewn
nmewn's picture

Well at least somebody got it ;-)

Mon, 07/11/2011 - 22:38 | 1446423 Rahm
Rahm's picture

^  WIN!

Tue, 07/12/2011 - 00:30 | 1446748 faustian bargain
faustian bargain's picture

good one

(...although judging from the URL on Bloomberg's site, 10k is double what was expected.)

 

Mon, 07/11/2011 - 21:51 | 1446273 Ecoman11
Ecoman11's picture

Let the Layoff Olympics begin...

Mon, 07/11/2011 - 21:53 | 1446280 Out9922
Out9922's picture

Instead of a torch, they will carry the Golden Pitchfork

Mon, 07/11/2011 - 21:54 | 1446275 King_of_simpletons
King_of_simpletons's picture

This is a dumbass company. No innovation anymore. It's glory days are over.

Mon, 07/11/2011 - 22:54 | 1446492 Tejano
Tejano's picture

Agreed. They were on their way out anyway. Their products are clunky and way overpriced (except on Ebay). Any innovation Cisco exhibited in the 1990s came from gobbling up smaller companies. Switches and routers -ho hum- the plumbing hardware of the 21st Century.

Unfortunate for those layed off that the firings come in the midst of s 'soft patch'.

Mon, 07/11/2011 - 21:55 | 1446283 traderjoe
traderjoe's picture

A company this size would have to get 'permission' to do this. Once the flood gates open, expect a lot more companies to follow suit (as referenced in the article).

Mon, 07/11/2011 - 21:54 | 1446284 centerline
centerline's picture

10,000 more families that won't be paying mortgages, but won't get evicted either.  Therefore, they can buy more I-things and nick-nacks with those generous unemployment checks.

Mon, 07/11/2011 - 22:06 | 1446330 nmewn
nmewn's picture

Fun-employment!

Mon, 07/11/2011 - 22:11 | 1446350 Rodent Freikorps
Rodent Freikorps's picture

Long term funemployment and O-Care means every day is a day at the beach.

Only fools work in Socialist America.

Mon, 07/11/2011 - 22:39 | 1446432 Rahm
Rahm's picture

Judge Judy gets a ratings boost of 10k!

Mon, 07/11/2011 - 22:41 | 1446442 nmewn
nmewn's picture

Its like a fucking nightmare.

Truly now, if someone were actually trying to wreck everything they touched, what would they do different?

Mon, 07/11/2011 - 22:52 | 1446485 Rodent Freikorps
Rodent Freikorps's picture

Almost like there was a plan.

Mon, 07/11/2011 - 22:56 | 1446497 nmewn
nmewn's picture

Cloward-Piven.

Mon, 07/11/2011 - 23:10 | 1446537 PD Quig
PD Quig's picture

That's a tough question. It's like when you're having a bad streak trading, you start thinking, "What if I just did the opposite of every trade I was about to enter?"

But then you think, "Well, but what if they think that I think that I'm going to take to opposite side of the trade?", and so on.

I think they're wrecking everything via a sort of Zen Fuck-up Master state that they've achieved after never having done anything worth a shit in their entire lives. I mean, other than writing some dumbass papers in school and such.

Mon, 07/11/2011 - 21:58 | 1446289 Hard1
Hard1's picture

What's killing Cisco (aside from weak demand in the US) is competition from China, notably Huawei modems, a brand owned by ZTE (Shenzhen 000063).  What Cisco refers to as "Internet Protocol-based networking solutions" are mostly stupid modems and trust me, they are easy and cheap to manufacture.  Just like the US economy, Cisco is a product of the dot-com bubble that has refused take the full extent of the hit in 2000.

Mon, 07/11/2011 - 22:00 | 1446303 HungrySeagull
HungrySeagull's picture

To understand your work with Cisco, you only need two things.

 

OSI Model (Which was hammered into my brain only to be cobblestoned over with something else much more useful)

Router Commands which generally consist of one or two words followed by two or three lines and numbers grouped in IP's and Subnets.

TThat is it. Everything else is just theory.

 

Anyone anywhere can go to Cisco Router simulators which will open and operate in virtual mode on your computer and once you have the hang of it... *Shrugs.

The next step will be for Cisco to ship the jobs overseas to a Sweatshop of sorts or a bunch of school children to do the assigned work.

Tue, 07/12/2011 - 00:44 | 1446772 Fukushima Sam
Fukushima Sam's picture

It's a little harder than that if you are delivering a valuable solution to many customers on a complicated high-speed network.  ;)

Tue, 07/12/2011 - 09:39 | 1447467 fallout11
fallout11's picture

Or not, as it turns out, which is why Cisco's competition have been eating their lunch for several years now. Overpriced bloated and overly complicated is what they have been hawking, thus becoming the IBM of the router world.

Tue, 07/12/2011 - 10:25 | 1447602 Fukushima Sam
Fukushima Sam's picture

Cisco routers are great because they can do so much, and they do it reliably.  But only 20% of their customers need the advanced features only Cisco does so well at.  The rest do just fine with the more basic features Cisco's competitors offer.

I do believe Cisco has moved too much focus off of their core competencies and that has affected their innovation on their router lines.  Flip was a really dumb move...

Tue, 07/12/2011 - 12:08 | 1447961 fallout11
fallout11's picture

We are in complete agreement.

Mon, 07/11/2011 - 22:03 | 1446323 Jack Burton
Jack Burton's picture

 Interesting! Somehow I figured a China based competitor would be part of this story.

 This sort of manufacturing is right in line with China's strong points, perhaps 10K is only a warm up before industry wide layoffs of USA based workers.

Ypu gotta ask, with the costs of a USA based employee, how on earth will any manufacturing and developement hang around the USA.

Mon, 07/11/2011 - 23:08 | 1446535 LetThemEatRand
LetThemEatRand's picture

I wonder how many high paid workers in Silicone Valley thought a few years they were immune from the ravages of "free trade" on the U.S. economy.

Mon, 07/11/2011 - 23:20 | 1446569 PD Quig
PD Quig's picture

What a bunch of dumbfucks they are to be involved in making actual shit. Why, 30 miles up the road at Zynga they could be making imaginary cow, tractors and shit with zero supply chain required--save for a few stray electrons. Now THAT'S a business model! Sell people imaginary crap and charge them for it. Motherfuckers are making, what, $800 million per year doing this? This business model makes the Pet Rock look like a complex idea. I figure what's next is that BofA and Zynga merge and they just take .00001 on every financial transaction and provide fuck all but a new debit line on your bank statement every month. No need to provide anything of any value any more. American consumers are so fucking stupid that they'll pay for anything...or nothing.

Mon, 07/11/2011 - 23:37 | 1446627 Mactheknife
Mactheknife's picture

+10..I'll never forget the first time someone showed me that...I walked around shaking my head for two days.

Tue, 07/12/2011 - 00:29 | 1446747 WonderDawg
WonderDawg's picture

I like your style, PD. I was reading your post thinking, that sounds exactly like something I might write. This guy must be cool.

That last line, pure genius.

 

Tue, 07/12/2011 - 04:21 | 1446968 Slipmeanother
Slipmeanother's picture

What you dont like Mafia wars????? you must be a soft terrorist!

Mon, 07/11/2011 - 23:32 | 1446608 Ident 7777 economy
Ident 7777 economy's picture

by Jack Burton on Mon, 07/11/2011 - 22:03 #1446323

Interesting! Somehow I figured a China based competitor would be part of this story.

- - - - - - - - - - - - - - - - - - - - - - - - - - -

Day late and dollar short; Foxconn - http://www.foxconn.com/ IS Cisco's China based contract manufacturer ... collar any Mfg eng at Cisco and he/she'll tell you (Been there - seen it) ...

 

.

 

Tue, 07/12/2011 - 05:39 | 1447015 Non Passaran
Non Passaran's picture

ZTE is ZTE, Huawei is Huawei. Separate entities.

Mon, 07/11/2011 - 21:55 | 1446290 Thomas Jefferson
Thomas Jefferson's picture

We better open up a few more McDonald's franchises. 

Mon, 07/11/2011 - 21:59 | 1446301 centerline
centerline's picture

Wonder how many software/hardware engineers might wind up going all pirate-like (lulz style).

Mon, 07/11/2011 - 22:00 | 1446307 The Axe
The Axe's picture

never good.......never

Mon, 07/11/2011 - 22:00 | 1446309 sabra1
sabra1's picture

Cisco Kid was a friend of mine, but not if he's unemployed he's not! bum! 

Mon, 07/11/2011 - 22:02 | 1446315 mfoste1
mfoste1's picture

 software programmer to obama: soooo im going to be competing against 10000 addtl people for a job? I thought there was a recovery?

 

obama: everyone's gotta make sacrifices

Mon, 07/11/2011 - 22:03 | 1446317 HungrySeagull
HungrySeagull's picture

I left Cisco out of College when I imagined a future surrounded by Ho-Ho snack wrappers, bad teeth and a unfulfilling life entering words and numbers over and over again to a machine somewhere in the Globe on a WAN, LAN or whatever that I will never see or touch. Blah.

 

The fucking ethernet was even more simple. Computer to this box, this box to a bigger box and thence to the mighty router. Then to something else and so on.

Mon, 07/11/2011 - 23:21 | 1446571 Hulk
Hulk's picture

Syn Ack Fin!

Tue, 07/12/2011 - 00:46 | 1446775 Fukushima Sam
Fukushima Sam's picture

Some are born to network, some are not.

Mon, 07/11/2011 - 22:02 | 1446321 pleseus
pleseus's picture

Was that the starting bell for the corporate hacks to start firing more people.  Me thinks o.

Mon, 07/11/2011 - 22:03 | 1446322 JW n FL
JW n FL's picture

10,000 more jobs to China! only 40,000 more to make our Monthly quota!

 

I hope Cisco does GREAT! things with the Tax Break(s)!

Mon, 07/11/2011 - 22:08 | 1446327 bob_dabolina
Mon, 07/11/2011 - 22:07 | 1446328 Saxxon
Saxxon's picture

This to me is more ominous than what's coming out of Europe right now.

CSCO and the rest are just down I-680 a piece.  As someone indicated above, for CSCO to announce this size of layoff smacks of "Apres Moi, Le Deluge".

Mon, 07/11/2011 - 22:06 | 1446333 MsCreant
MsCreant's picture

He drinks whiskey, Pancho drinks the wine...

http://www.youtube.com/watch?v=GMlrI6IkQv0

Mon, 07/11/2011 - 22:10 | 1446344 nmewn
nmewn's picture

+1 for memories.

Mon, 07/11/2011 - 22:21 | 1446375 MsCreant
MsCreant's picture

Better to spin records than jobs numbers, eh? 

Mon, 07/11/2011 - 22:51 | 1446479 nmewn
nmewn's picture

Yes my alumnus sister, it certainly is.

Tue, 07/12/2011 - 00:38 | 1446762 WonderDawg
WonderDawg's picture

The outlaws had us pinned down at the fort...

Mon, 07/11/2011 - 22:07 | 1446339 Jack Burton
Jack Burton's picture

 Obama's presidency is a dead issue. Those hoping for a republican to bring the jobs home are an even deader issue than Obama's presidency. Polical parties are so 20th century, the oligarcy owns them both and will buy up any upstart [read tea party] as fast as they gain a voter base.

Under President McCain not one more job would have stayed in the USA. Not one stinking job.

Mon, 07/11/2011 - 23:35 | 1446618 Ident 7777 economy
Ident 7777 economy's picture

by Jack Burton  on Mon, 07/11/2011 - 22:07 #1446339 

Obama's presidency is a dead issue. Those hoping for a republican to bring the jobs home are an even deader issue than Obama's presidency.

- - - - - - - - - - - - - - - - - -

 Brain-less or Brain-dead?

 

Pol party's AREN'T going away anytime soon either ...

 

.

Mon, 07/11/2011 - 22:15 | 1446359 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

LOL...I have just seen your idiot TOTUS speak in Wisconsin...what a fucktard he is. An awesome campaign he ran in whenever it was, but he is SO fucking dumb. Pity...

Mon, 07/11/2011 - 22:17 | 1446361 thadoctrizin
thadoctrizin's picture

Not to generalize, but I am amazed at the number of people that I come into contact with that recently express a sense of relief when they get their pink slip. I hear "i think i'm going to go back to school" or "at least now i can spend some time with my family." They are almost glad to have a subsidized vacation. Maybe it is just because it is summertime in the northeast and people are looking forward to some rest. Or perhaps these expressions about the silver lining of unemployment are a coping mechanism. Either way it is a disturbing thought that losing your job has lost it's stigma. Oh well, gotta get back to work to help subsidize my neighbors vacation!

Mon, 07/11/2011 - 22:22 | 1446377 HungrySeagull
HungrySeagull's picture

The Sigma lies being rejected by your family for advocating your 1,2 and on down through the Consitutional Amendments.

You are further rejected when you tell your family FDIC is bust and ignored when you try to teach them to pay off that mortgage now (As in years ago) and get the note.

You are finally reduced to a life of a outcase on ZH scraping together what little sanity you have to follow the converstations of other rejected people who have generally solved the world's problems overnight by blog.

Mon, 07/11/2011 - 22:51 | 1446475 Saxxon
Saxxon's picture

Yes, that's usually just a mind game they play with themselves.  The pain and anxiety are temporarily over.  It'll never lose its stigma with me.

Ask them how they feel in 6-9 months. 

Mon, 07/11/2011 - 22:21 | 1446374 realitybiter
realitybiter's picture

This seems to be a common play:

1)Piss away a gob of money on bad investments, reducing your capital strength (should I list the brain dead acquisitions or just stop with the $7billion for Cerent and $2b for Andiamo (which they already owned since it was a spin-in?)  Flip?

this sounds like the 2008 bailout

 

2) When none of the investment works, just punish your people (Cisco lays em off, Uncle Sugar and the locals raise taxes or reduce services).

 

I won't hold my Breath for Chambers to offer severances to the newly laid off out of the $100's of millions he has extracted in options for a stock that has sucked in every sense for a decade.....  

Vengeance will be the Lords.  His Initials are JC!  Ha!!

Mon, 07/11/2011 - 23:43 | 1446644 Ident 7777 economy
Ident 7777 economy's picture

by realitybiter  on Mon, 07/11/2011 - 22:21 #1446374 

This seems to be a common play:

1)Piss away a gob of money on bad investments, reducing your capital strength (should I list the brain dead acquisitions or just stop with the $7billion for Cerent and $2b for Andiamo (which they already owned since it was a spin-in?) Flip?

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

300 Mil for Navini (Wireless Infrastructure "WiMAX") ~ 2008; a couple years later new product nearly complete was CANCELLED ("P4") internally and never saw the light of day 300 mil plus two years development (salaries, board builds, software etc) down the drain  ...

 

.

Mon, 07/11/2011 - 22:24 | 1446384 Itsalie
Itsalie's picture

But that's ok right? We have a web 2.0 renaissance going on in silicon belly and Wall Street IPOs lined up to the sky, kids are quiting school to start companies valued at billion dollars funded by the John Doles and Vinod Khosmas that will create 1 million jobs a month non? If even all these fail to create the jobs needed for re-election, we can always fall back on QE3 to print and air-drop toilet papers at the solars, teslas, and ethanols and have congress regulate that each recipient of the FRNs must hire 50k bigmac gulpers a month to boost the NFP right? 

Mon, 07/11/2011 - 22:32 | 1446403 HungrySeagull
HungrySeagull's picture

I am hoping at least one disgrungled laid off worker must still be hiding within the floors of the Headquarter's Server farm carefully timing the moment to snip some very important cables.

Mon, 07/11/2011 - 22:40 | 1446416 HUGE_Gamma
HUGE_Gamma's picture

"according to sources, all laid off employees will receive a complimentary Ipad, and a coupon for free hamburgers a local McDonalds."

Tue, 07/12/2011 - 00:27 | 1446742 Charles Wilson
Charles Wilson's picture

"...with purchase of one Ipad and two hamburgers at regular suggested retail price."

 

CW

Mon, 07/11/2011 - 22:38 | 1446420 tony bonn
tony bonn's picture

another green shoot hits the toro blade....

Mon, 07/11/2011 - 22:40 | 1446435 HungrySeagull
HungrySeagull's picture

I cut fields, not grass.

The stupid commericals show one inch manicured lawns being cut effortlessly by new mowers.

They should inject the sound of a opposing piston tractor bogging down on some paper trash blown into the PTO.

Mon, 07/11/2011 - 22:41 | 1446436 Cdad
Cdad's picture

 

Spin This: Cisco To Fire 10,000

OK...board members are granted extra, extra stock options, which they will sell  like madmen, to be followed by the announcement of an increase in the corporate stock buy back, further giving the appearance of earnings growth where there is none.

 

 

Mon, 07/11/2011 - 22:44 | 1446453 HungrySeagull
HungrySeagull's picture

And suicide proof windows are installed as we speak.

The next boardroom will be built in the sub basement equippted with staplers. The red ones.

Mon, 07/11/2011 - 22:41 | 1446440 TheRipper
TheRipper's picture

Not sure the Silicon Valley has enough McDonald's chains to absorb this.

Mon, 07/11/2011 - 22:52 | 1446484 mayhem_korner
mayhem_korner's picture

Yes, but some of the cabernet drinkers can shift to picking grapes. (you know, to stay "current")

Mon, 07/11/2011 - 23:16 | 1446555 I am Jobe
I am Jobe's picture

If they build they will come. I see a lot of IT increase at MCD. about time MCD had robots cooking and taking orders.

Mon, 07/11/2011 - 23:25 | 1446586 sun tzu
sun tzu's picture

How about coffee shops?

Mon, 07/11/2011 - 22:42 | 1446446 midnight
midnight's picture

Why care about "jobs" when we can all make money shorting the PIIGS ?

Mon, 07/11/2011 - 22:46 | 1446458 mayhem_korner
mayhem_korner's picture

Less than next week's upward revision of initial jobless claims. 

8-D

Mon, 07/11/2011 - 22:57 | 1446499 Nevermind
Nevermind's picture

How many of those clamoring for austerity will sing a different tune when they join the swollen ranks of the unemployed? And if cutting the deficit is really your first priority, then how do you argue that protecting millionaire earners achieves your target? Of course, democracy comes before hypocrisy...in the dictionary. 

Mon, 07/11/2011 - 23:02 | 1446519 Rodent Freikorps
Rodent Freikorps's picture

Geez, Stalin.

The problem with stealing the wealth of the rich is you can only do it once, and then there is no one but bureaucrats to invest in start ups.

They have a really bad track record of pissing away billions to produce absolutely nothing, but votes.

Mon, 07/11/2011 - 23:14 | 1446550 nmewn
nmewn's picture

"And if cutting the deficit is really your first priority, then how do you argue that protecting millionaire earners achieves your target?"

Simple.

Your first target was those making 200-250K which didn't work out so well as a strategy.

So, its not really about "the millionaires", is it?

Mon, 07/11/2011 - 23:41 | 1446640 High Plains Drifter
High Plains Drifter's picture

yeh nevermind, but after the night comes the morning. nobody said there was not going to be a lot of pain in all of this. listen. if those bastards sell us out and i know they will, it is finished in this country.

Tue, 07/12/2011 - 00:20 | 1446731 sun tzu
sun tzu's picture

So you think we can continue to run $1.7 trillion deficits forever and it won't matter? Repeal the Bush tax cuts and we still have a $1.6 trillion deficit annually. Steal every last dime from the Forbes 400 and we still have an $1 trillion deficit this year and $1.6 trillion again annually. There is no way to tax ourselves out of this mess. Spending went from $2.1 trillion under Clinton to $3.9 trillion under Obama in 10 years. The Bush tax cuts "cost" the government $140 billion annually. The last time they taxed the rich, over 40000 middle class "luxury" boat builders lost their jobs. That worked out real well. 

Mon, 07/11/2011 - 23:16 | 1446556 The_Dude
The_Dude's picture

Hmmm...who's going to get canned....the few remaining Americans getting livable wages OR the slave wage H1-Bs.....

It's amazing what has happened to this place.  I am starting to wonder when we'll openly exercise the caste system in the valley.  Makes we wonder which one the Americans will get slottd into...

Mon, 07/11/2011 - 23:19 | 1446566 HungrySeagull
HungrySeagull's picture

The remaining Americans.

The H1-B's are strongly encourage to work harder and succeed.

Until the Americans learn to live cheaper than the H1-B does this will continue.

Mon, 07/11/2011 - 23:32 | 1446597 High Plains Drifter
High Plains Drifter's picture

as an american, i find it so insulting for them to bring foreigners here so they can employ them at a cheaper rate than an american.  what they want is for everyone to work for 5.00/hour..........with no benefits........

Tue, 07/12/2011 - 03:46 | 1446946 bigwavedave
bigwavedave's picture

and here i am paying my staff $5 per day yer fat ass yank bitchez.

Tue, 07/12/2011 - 00:18 | 1446724 The_Dude
The_Dude's picture

That's right asswipe...all aboard the Global Wage Arbitrage train, departing to 3rd world status.  I just hope they don't wait too long to get to your industry.  And please kind sir, do tell what shining city upon a hill where you reside

 

Hmm....now that I think of it, Silly Valley is ahead of the curve then.  It already is starting to look like a 3rd world shithole.

Mon, 07/11/2011 - 23:19 | 1446567 I am a Man I am...
I am a Man I am Forty's picture

u know, as a corporation, u r on your mother fucking toes if u decide u have to fire 10,000 of your employees all at the same time

Mon, 07/11/2011 - 23:21 | 1446570 HungrySeagull
HungrySeagull's picture

Nah.

Have HR process them out and each one escorted off property by Security, when all are gone then announce it.

What they do not understand that even the most abused worker will harbor great patience as they evaluate the Mansion on the hillside in the distance as Cisco parties away the night.

Mon, 07/11/2011 - 23:36 | 1446621 High Plains Drifter
High Plains Drifter's picture

that is what they used to do at compaq. they would fire some guy and then the goon squad would come in and escort him off the property, maybe ten minutes max............ha ha ha

Mon, 07/11/2011 - 23:26 | 1446587 OldPhart
OldPhart's picture

In unrelated news, Xinjiang Yuansheng Technology Development, Ltd. annouces an increase of 40,000 production positions.

Tue, 07/12/2011 - 00:08 | 1446593 High Plains Drifter
High Plains Drifter's picture

the people that invented cisco type routers and switches, in their garage, should never have sold the company,  to the venture capitalist. what a great invention it was and now look at them driving it into the ground.

Mon, 07/11/2011 - 23:29 | 1446596 WilliamShatner
WilliamShatner's picture

I wonder if Chambers is doing this to save his skin.

If anyone deserves to have his head chopped off it's him.  Why the shareholders haven't kicked his ass to the curb by now is beyond me.  Should have happened years ago.

Mon, 07/11/2011 - 23:31 | 1446601 High Plains Drifter
High Plains Drifter's picture

how did that flip camera acquisition work out. someone has lost their way. what is cisco about anyway?  routers. always was and always will be. they were the best. and now look at them. greedy fucks.....

Tue, 07/12/2011 - 01:54 | 1446856 SoCalBusted
SoCalBusted's picture

+10.0.0.0

Sometimes, when we are lucky, right after the n-1 pink slip is handed out, the CEO is handed the nth one.

 

 

Mon, 07/11/2011 - 23:31 | 1446604 WellingtonDowd
WellingtonDowd's picture

Comcast is doing the same thing; massive outsourcing effort is underway for their internal technical people.  They're keeping it under wraps, but a huge chunk of their support staff is expected to get the axe.  Good thing they bought NBC, they can use that to spin this as a positive!

Mon, 07/11/2011 - 23:34 | 1446613 High Plains Drifter
High Plains Drifter's picture

why use americans when you can get some indian guy to do it for a lot less.

Tue, 07/12/2011 - 00:42 | 1446770 whatsinaname
whatsinaname's picture

but atleast they might do a better job ? google science fair results out !

Mon, 07/11/2011 - 23:32 | 1446610 Mitch Comestein
Mitch Comestein's picture

They are going to hire them all back in two months to get the tax credit.

Mon, 07/11/2011 - 23:34 | 1446614 StormShadow
StormShadow's picture

May just get to try the spaghetti MRE sooner than I thought.  Oh trusty Mossberg, though shall not sit idle much longer.

But hey everybody, free bread is coming...and tickets to the Circus!

Mon, 07/11/2011 - 23:56 | 1446686 Sabibaby
Sabibaby's picture

+590

Tue, 07/12/2011 - 00:00 | 1446696 robertocarlos
robertocarlos's picture

How about having some real spaghetti and meatballs while you can still get spaghetti.

Tue, 07/12/2011 - 04:03 | 1446959 Urban Redneck
Urban Redneck's picture

When you can longer get the raw materials to make your own pasta - the world is finished.

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