I’m sure more details will leak after that meeting
12 replies (most recent on top)
why are we not getting the ER packages? how come some of you are getting it!?
Have some cheese with your whine.
There have been a LOT of people LR'd between the previous early retirement offer and now. LR's haven't been about how hard you work, but how much you cost. Although why managers keep people who do nothing which lowers their team's productivity level is beyond me.
it was upsetting to see this, me and few others were axed 2018, on these quarterly stealth, why are we not getting the ER packages? how come some of you are getting it!?
I see people doing no work and no productivity survives at Cisco and yet I was working really hard and still get laid off. sometimes 12+ hours days..
I was at one of these groups that handed between BUs... called managed service..
is there any decency at Cisco? stop these social justice thing, Cisco is a horrible machine!
Another exclusion is those whose IPF last year was over 1.50, which I found a fantastically high number. I’d only ever seen that number given by JC to his crony execs (it was 1.8).
The ER program will only be available in 5 countries and there a few exclusions (not recently promoted), so Cisco learned some lessons from the last ER and the impact of it is going to be less than people think. Interestingly, the people eligible will be notified directly, while the mangers will not know until after the consideration period.
They want to cut 8% of OPEX, now not all of that will be people, but a big chunk will be. So, the idea they only want to get rid of 1,500-2,000 is BS. So, the 200k-300k number is wrong.
Full details in the CheckIn Friday. #62 plus some other options.
Any word from the leadership meeting this morning?
62, age + svc
Leadership meeting has a bunch of people from Communications group, so I suspect this is more about the diversity initiative mentioned in last ELT check in.
They pay all benefits at once in cash. 1 year salary, 2 years of Cobra, PTO payout and bonus plus a few I'm sure i'm missing. It adds up. The estimate generally used is $200k to $250K per person. With $900M being allocated, that would be about 3600 people affected. I would expect about half that will take ER.
Your cost estimates for layoffs might be true for Germany, but not for 90% of the world. We don’t know what the ER will be, but obviously the more generous it is, the less people will be eligible. So, very hard to guess that.
Even assuming the median wage of senior (shh, older) people is $100k (average is much higher), I Just cannot see how the retrenchment costs, outplacement and some transitional benefits can be anywhere near $100k. (Remember, not everybody is paid SJ wages).
Generally it’s 3 people for 1M$ inclusive of all after placement/HR/transition cost. So make the math .. only 500M$ will be used in Q1 —> 500x3=1500. Most of software only services like security n webex will not be affected. This time it’s more about MDS,Nexus & Datacenter product lines.