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Spin This: Cisco To Fire 10,000
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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Panem et Circenses! Too bad the NFL and NBA are in lockout!
10,000 people who made an awful career choice , instead of going to college and getting a job at Cisco ....when they could have right out of high school got a job as a cop and been retired by now with $90,000 pension
10,000 Kans - o - Peaz!
10k lose jobs at cisco
10k more stop paying mortgage
10k more buy new ipads
10k more on unemployment
Remember students, we have a shortage in the technology sector.
Well, Chambers was paid $18.9m in 2010:
Cisco Systems Inc. CEO John Chambers received about $18.9 million in compensation for the latest fiscal year, a 33 percent increase from last year's payout due to more generous bonus and stock awards.
Because we all know firing 10,000 people to protect ones bonus which is tied to profitability is a very tough job. Let them eat cake for the 21st century.
Can anyone remind me why there hasn't been a march on Washington about unemployment and income disparity yet?
Because.. "We the Sheepish Consumers" are busy being mad at the 24 hour a day news cable people for being wrong! LULZ!!!
America the Beautiful is filed with fucking idiots! that is why the Dems and Repubs are taking turns ass raping "We the Sheepish Consumers"! but one day their asses will hurt enough for someone to yell stop! but until America yells Stop! it is consensual sex, NOT! Rape!
"Can anyone remind me why there hasn't been a march on Washington about unemployment and income disparity yet?"....
Give it 12-18 months.
As long as there are circuses, and bread, you are likely to be proven wrong.
A quick look at the NYX best seller list, the daily TV consumption of the "bottom" 90%, and given that the leading edge of the revolution (these uprisings are always preceded by the "art" of the current culture) is docilely expressed in pointless (pointillist?) tatoos, I don't hold out much hope for this disaparate, spread out population to have much of a chance against a well fed army, police persons who lust after more power and control, and a central government that is primarily concerned with getting us to "eat our peas, take off the bandaids" and other infantile nostrums as espoused by our boy POTUS, the inimitable Bamster.
Because Americans are lazy, docile fuckers who are too occupied with absurdities like Snooki, gay marriage, beer and football to be bothered. You want to incite a million man march on DC? Then tell America that they can't marry their gay lover and then look the fuck out. Tax the shit out of us, steal from us, start 10 more wars, cut pensions and salaries and apparently we are just too damn busy to be bothered with that...
This country and all who inhabit it, including myself = FAIL
++++++++++++++++++++++++++++++++++++++++
I am FAIL!
and since I live in San Jose i guess less traffic for me.
that's the spirit!
Wait, so that means the employees are making (mashes calculator furiously) $200,000 on average.
Hmm, I wonder if they will be hiring again soon...
There is a difference between "making" and "costing" - a simple rule of thumb would be fully-loaded cost per FTE is 150% of salary (this % gets really skewed & doesn't apply in Financial Services and other industries where significant and/or required bonuses exist). So $1B for 5,000 should be $133,000 salary (or salary and bonus depending on Cisco's comp. model). There is also the savings on overhead (Rent/Utility reductions, gain on sale of Facilities closed) which comes off the top. Some overpaid half-wit masquerading as a Cisco analyst should come up with some projections in the next couple weeks.
EDIT - 150% might be outdated since I was using it 5 years ago which was before some rather quantifiable "transitory" insurance inflation and Obummercare. Throw in some agressive accounting assumptions under the FASB/SEC bullshit they could probably cut 5,000 $50k a year jobs and project $1B in savings, but that's not a rabbit hole I care to go down.
Dude.... I was going to apply there......lol
Do you like cheese in your burger?...
Cisco is huge...70,000 employees. Given that, layoff is in US, but hiring in India. H1Bs are getting ready to get a green card, so fire them and hire fresh batch of slaves in India or reject greencard sponsorship and move them to India.
The total number of employees in India is projected to rise to 10,000 from about 6,000 currently, he added. However, Chambers did not divulge the timeframe. In 2007, the company had announced that it would increase its headcount in the country to 10,000 by 2010, from over 3,000 employees then.
http://business.rediff.com/report/2010/mar/12/tech-cisco-india-hiring-pl...
Hillary Clinton is a big supporter of H1B and Indian outsourcing. So are most of other democrats hiding behind minority rights, diversity, immigrants, etc.
Obummer, his "econ" folks, and a large bunch of CEO and financial types had meetings in India last December. This could be one of the first products of those meetings, the goal being to outsource till most everyone in the mythical "land of the free" is dependent on .gov.
Get fuckup Barry out of there...
Cisco will fire in the U.S. as many over 30 employees with kids possible as they hire and build out the wired router and infrastructure in China and other overseas locations.
If they don't have plans to move into cell phone networks this company is MySpace on steroids.
Until, of course, WWIII starts and wired connections mean something again because the old copper wires are all that will work.
Cisco = Crisco
I suggest Cisco confine their firings to those employees who drive an imported automobile. The import drivers have expressed scorn for the American worker now let's see how they like being unemployed.
snow..
How naive so many here are.
Aside from the exorbitant compensation of the Execs, managers, and other dross and hangers on, who are utter failures and should be paid as such, running a business is monumental task. Most of the human beans who make the day to day decisions to keep it operating at a decent return are not up to 'waging' the war that the internal, local, and national let alone the global forces arrayed against it.
SIZE MATTERS. 70,000 employees. Think about the possibilities for fuckups in an organization of that size. They are legion. The stock price has more than broadcast, screamed at us for years, just how poorly Chambers and his minions have managed this company. Those who work there have known for years that they should have left the organizaion. The information has been there for years available to any sentient being that "something is rotten out back in the woodshed." Woe to you who have and will continue to ignore all the signposts that tell you to move on, move out, get going somewhere else instead of waiting for the axe to fall upon you. You bear the ultimate responsibility for your present and your future.
Many did. They may or may not have been more competent than you, You might ask them for some advice as to what made them leave the company and seek better opportunities.
Can't say I feel sorry for anyone in this position. We all stand by as illegals flood into our country and our towns and neighborhoods and turn everything into a mini version of what they left as they steal most of the blue collar jobs. We stand by as our white collar jobs are outsourced to China and India and the company gets tax breaks for it. We stand by as wall street banks get bailed out with OUR tax money while we are forced to endure cuts and pay ever-increasing amounts for daily staples. We stand by as politicians do the EXACT opposite of what we tell them we want them to do. The power is with the people. The people just choose not to do what needs to be done. They instead prefer listening to Gaga, watching Snooki and the other Jersey rats make fools of themselves, drinking beer and thugging around in stained wife beaters. Nope, not sorry at all. If you look around the table and can't see who the mark is then YOU are the mark.
It could have been worse