Does this imply a 4% cut in headcount? – Q3 Revenue Guidance: -1.5% to -3.5% decline year over year.
21 replies (most recent on top)
it should be mother of all layoff
So true @4eyj+13tnPGqZ, new framework supposed to be CS as a paid service but not even rolled out after 1.5 years of her regime.
I was part of the Nov 5th 2018 layoff in CS after Maria arrived and tool over, guess the 19M they are paying her isn't working as the Cisco sales teams are indicating things are no better and in some case worse when it comes to software licencing and renewals. Too bad!
Agreed with all prior comments. All Hands are scheduled right after layoffs to fix the low morale in BU. Expecting news to start dropping Wed of next week or at the latest week after. Typical pattern at Cisco. After seeing the last 10+ layoffs I am done here, hoping to collect the package this time as many many other folks at Cisco and move on.
The beat is next week. They'll start dropping bodies the day before.
TCG All hands scheduled to immediately follow the Beat next week. An ominous sign?
In my experience, heavily impacted BU's will have an all-hands shortly after the affected employees are notified to tell the survivors that they survived this year's hunger games, so yes, it's an ominous sign.
What were the quarterly numbers for TCG? If they were bad, especially if they were worse than other BU's within CSCO, you're in trouble.
TCG All hands scheduled to immediately follow the Beat next week. An ominous sign?
Blame Wuhan virus. Cisco can't replenish its inventory due to work stoppage at Chinese factories that build the routers/switches and other gear.
For the gentleman who posted in defense of trade wars: Are you so naive to believe that punitive, scatter shot tariffs applied unilaterally on imports from the worlds second largest and fastest growing economy wouldn't have an impact on our bottom line? Microsoft, Apple and Amazon sell to consumers, whose spending is the last thing propping up the sputtering Trump economy. Cisco sells to large corps with large long term contracts and we're not even being invited to bid in China anymore.
But hey, keep blaming H1B visa holders snowflake, you built this.
For the gentleman who posted about trade wars:
Are you that naive to believe the trade negotiations is what is causing Cisco not to thrive? It is a historic successful economy unless the sector is obsolete. Companies which figured out growth areas like Microsoft, Amazon etc are booming. I dont even know how can the board accept excuses like that. The recent trade negotiation Is a necessary process. It has been making progress already. The problem is that Cisco is immersed in backwards vision from 1980s and clearly it cannot progress.
The beat is next week. They'll start dropping bodies the day before.
Here is my math. $300M charge - I am assuming 200K per employee in separation costs - therefore - 5 grunts covered with a $1M... 300*5=1,500. That's your LR number, 1,500 peeps.
Alternatively you can go with 300K per grunt or 100K per grunt - that would give you a 1,000 to 3,000 laid off employees range.
I am sure someone can go to our previous announcements and figure out the separation cost per employee, this would make this whole estimate more scientific...
Cisco also said it would have a $300 million restructuring charge that would include severance and other costs, with $150 million recognized in the current quarter. A Cisco spokesman declined to give the number of job cuts. Cisco typically does smaller job cuts on a rolling basis, after years of one big summer layoff.
Three things are certain in life: death, taxes and continual Cisco LR's.
The ELT will just keep hacking away until there is no talent left to innovate the company out of the decline it is in. For those that will be impacted, I do feel your pain given I'm a SPBU Eng LR'ee from late 2018 but remember : alternate employment is both a reality and a massive improvement on the toxic organisation that is shedding you.
Good luck everyone.
85% red badges and bottom 5% performers blue badges are on the list. No H1B aka Indian will be affected by this layoff.
I was part of 8% in 2016. Now double the TC and so much happy.
where is 4 percent LR come from ?
Cisco also said it would have a $300 million restructuring charge that would include severance and other costs, with $150 million recognized in the current quarter. A Cisco spokesman declined to give the number of job cuts. Cisco typically does smaller job cuts on a rolling basis, after years of one big summer layoff.
Layoffs coming for sure.
cisco announced LRs yet after stock decline today ?
Trade wars are good and easy to win right?
Maybe 8% LR as they have to factor in future revenue declines. AWS is eating our lunch.
Feels like it