It seems like it was just yesterday when CSCO announced it would fire 10,000 people [4]. And then another 1,300 [5]. And then another 500 [6]. Fast forward to today when the "one-time, non-recurring" termination charges are back, as the "recovery", now in its 5th year, progresses a little differently than expected, this time with another 4,000 FTE told to pack their bags.
- CISCO TO CUT 4,000 JOBS OR 5% OF WORKFORCE
- CISCO SAYS IT REMAINS 'VERY MUCH A COMPANY ON THE OFFENSIVE'
Nobody can blame the company, however: why keep full-time workers, when switching over to part-timers will do just as fine, and generate significant benefits to the bottom line and shareholders.
Yet all of this begs the question: If CSCO keeps firing 5-10K people every year, when do "one-time" termination charges become a recurring cost of business. Of course, we would expect the excuses to start in 3..2..1.. and for CSCO to be demoted to non-bellwether (remember, as Cramer said "this earnings season is all about Facebook.")
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