Has Cisco ever done a voluntary LR, early retirement or any other program like that in the past? If so, were the terms any different than the standard LR?
Assuming with the wall street numbers that a more significant LR needs to occur was just wondering if they have done this in the past or they will just do the standard LR process.
I just missed the 2009 ER but they changed the rules in 2011 and I got it. You had to be over 50 with your combined age and years of experience at 60 or over as I recall. I had four years at Cisco and qualified. The lump sum, prepaid benefits package came to one and a quarter years pay. I think that in 2009 you had to have a minimum years of service, 5 or 10 so I didn't qualify even though I was old enough. The age was lower in 2009 as I recall, 50 or 55. Anyway I got the nice payout and went to work for a competitor the next day. Some people I knew didn't take the package and they were laid off shortly later and had a hard time finding a job. I think that 3000 - 4000 people took the package. Apparently so much money was paid out that the CFO, Skipper as asked to leave. At least that was the rumor.
I remember the ER. The excuse that “a lot of good people left” was mostly a smokescreen. In my BU, it was the incompetents who got out when the getting was good. Most of the good people who were eligible didn’t take it; they figured they had many more years at the C word and liked their jobs (hard to believe but true). I was in Telepresence and Norwegians took our jobs a few years later.
It’s not that hard to position yourself to be LR’ed.
I don't believe everyone that was eligible was actually offered the deal. Some 'key' folks never got the offer if I remember correctly, even when they asked for it.
However, my recollection was the same as others have pointed out here. The rumor was WAY more people grabbed the chute and ran for the door than expected and caught a lot of HR-dopes by surprise.
Will never happen again. Don't expect it.
Yes, the '11 early retirement offer was basically twice the offer that the work force reduction offer was.
The terms were you needed to be at least 50 years old and with the company at least 10 years.
My understanding was that your age plus years of service with the company had to exceed 55 and that your age had to be at least 50. There was a guy at the copier making copies of LR paperwork when I was let go and he was furious. He was a college hire, so he wasn't over 50, but he had 17 yrs w/ the company & wasn't eligible for the ER. His new boss, however, came in at age 54, had 2 yrs with the company, took the ER and left with twice the severance he got for 17 yrs of service and he was (rightfully) upset about it.
...were told that CISCO would never do ER anymore because, first, they lost people whom they don’t intend to lose...
A manager I worked for had just been promoted to Director and he took the ER offer, got a year's salary and 2 year's benefits/401(k), all at his new Director's salary that he'd had for a whole 2 months. Yeah, he made out like a bandit and Cisco lost out. Thankfully he didn't come back after 2 yrs.
I was there at the time and it was hysterically funny. They should have known the smartest and most valuable people would run for the door. Including distinguished engineers and other patent generators. Who wouldn't leave for a years pay and benefits. Your working today with what's left and newbies
I was in the mgmt rank when they still gave ER. A few years after that we (the mgmt) were told that CISCO would never do ER anymore because, first, they lost people whom they don’t intend to lose, and second, LR is cheaper. With LR you control who will go and who will stay, with ER the company has less control.
both early retirement was under JC. He is super nice person and offer the very generous package.
In additional to 2 previous poster, whether you participate 401k program or not, a 2 year match 401k is paid out,
The previous poster is 100% correct. The ER package was better than a standard layoff package (more money, and longer healthcare coverage for no cost, but I can't remember specifics). I wasn't eligible or got hit back in 2011, but my boss at the time took the package and immediately jumped to a competitor. He was an id–t, but it was his one smart move. Cisco vowed to never offer ER packages again......and they really have no incentive to do so. Laying off is way easier and cheaper.
Cisco offered a voluntary Early Retirement package twice: in 2011 and one a few years prior. Rumor had it the one in 2011 would be the last one the company ever offered. The terms were you needed to be at least 50 years old and with the company at least 10 years. Lump sum payment was based on years with the company & you had to be absent from the company for 2 years before you were eligible for re-hire. The ER package in July 2011 preceded a massive lay-off the company pre-announced for August that year. Early retirees were given 6 weeks to decide with the ever looming threat of being laid off if they didn't take the ER package, which was more lucrative. Emails from HR were issued every Friday with a weekly countdown to make your decision, reminding you that if you didn't take the ER package you could risk being laid off the following month. And the company's open door policy was closed during the 6 week decision window. Management was not permitted to talk to employees about whether to take the package or not. It was not a good time in the company's history.