On August 12, 2020, Cisco announced a restructuring plan, which includes a voluntary early retirement program. Cisco will take action under this plan beginning in the first quarter of fiscal 2021. Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of
approximately $900 million consisting of severance and other one-time termination benefits, and other costs. These charges are primarily cash-based. Cisco expects that approximately $800 million of these charges will be recognized during the first quarter of fiscal 2021 with the remaining amount to be recognized during the rest of the fiscal year.
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What world are you people living in, on average, it's not going to cost $1million dollars for 3 employees - Maybe for a handful of VP level and above, but average employee would be much less!
Generally it’s 3 people for 1M$ inclusive of all after placement/HR/transition cost. So make the math .. only 500M$ will be used in Q1 —> 500x3=1500. Rest for ER. Most of software only services like security n webex will not be affected. This time it’s more about MDS,Nexus & Datacenter product lines.
Is the package two year salary like last time or one year salary?
Sales guys + insurance etc. Yeah 200-250k/head. Probably 4k ER target.
Where are all the a-holes at now that said Cisco would never do another ER?
@ppu I think we were closer to 150K/head.
In that case: 900,000,000/150,000=6,000
Timeline will be interesting. Last time several Senior Directors taking the ER, took what seemed like six to nine months after ER announcement to actually leave. Not sure how or if they negotiated that window. They didn't say too much during that window, just kept to themselves and mostly low-key. Both sold their San Jose pads and moved to Oregon. Others in group missed timeline by a year or so and were not happy as they inherited work from the leaving Director, but had six months to stew before the ER eligible person left. What a deal.
Use $200K per head as an average. That is historically correct. So, roughly 4500 heads on stakes.