Thread regarding Cisco Systems Inc. layoffs

@jker+1aeEE0xk I don't know what the severance packages are like now, but when I was laid off in 2016, the package was 1 month if you did not sign the agreement, 3 months if you signed the agreement + 4 months COBRA. In addition if you had 10+ years, you got one extra weeks severance for years 10 - 19, and 2 weeks extra for years 20 and above. Also, regarding LR's before 2011, don't forget all the outsourcing that was taking place prior to 2011. I was outsourced but was able to find something else within Cisco, all the others were laid off.

The first ER was a great package and more than expected took it. In fact it took too many people so the next ER was not as compelling. The second one was alright. Almost the right number of people took it from a business standpoint. It wasn't that strong where a lot said "TAKE IT AND RUN" like the first one. The last one was only something that the bulk of the people that took it were gong to retire anyways. About 30% took the offer and a number of those worked it so that their last day was January 6 or around there, It pushed that income into the new year. Another good part about all of them is you could remain on the Cisco insurance if you pay the entire thing.

Why Cisco is offering so much severance package? 3 months pay + Medicals. Is it kind of industry standard? Other companies also pays similar? like FAANG, MS, ORACLE, HP, IBM, JNPR, ARISTA etc?

Any idea about Microsoft Severance package?

Cisco doesn't pay that much in severance. The OP was describing a voluntary early retirement package from back in '11. Involuntary LR's were 6 months pay + 6 months medical. Then it dropped to 5 months plus extra weeks added for years of service in excess of 10 yrs. With every mass LR, the basic package seems to get a little smaller.

I think the larger severance package is due to being headquartered in CA which has more stringent employee protection rules regarding lay offs and they just make the packages the same for all employees regardless of what state they are in. There are different rules for LR's in other countries based on those countries' laws.

Why would anyone on the Cisco group know what the severance packages are for FAANG, MS, ORACLE, HP, IBM, JNPR, ARISTA etc? If you want to know their packages, ask in their groups. This is the Cisco group.

Early on, I had hoped that Cisco LR's would be uncommon events. There were only 2 leading up to the one in '11. Since then, they've become an almost annual thing. They do "stealth" LR's that you never hear about because they are in small numbers. When they can't get by with small numbers, or they need to make comment in the earnings call about cutting head counts to "restructure the business to better align on their business priorities" to reduce operational costs and boost stock prices, they lay off 1,500 – 6,000 employees at a time and it makes the news, i.e. 2008?, 2011, 2016, 2020. Cisco has gotten good at it and has built processes around it and now it's just a part of doing business. Buy a company for it's technology, integrate it into Cisco and then reduce Cisco's overall headcount by the number of employees it grew when it acquired said company. Wash, rinse, repeat.

Why Cisco is offering so much severance package? 3 months pay + Medicals. Is it kind of industry standard? Other companies also pays similar? like FAANG, MS, ORACLE, HP, IBM, JNPR, ARISTA etc?

Any idea about Microsoft Severance package?

I took the ER in 2020. My net was 1 yr salary. Enjoyed 3 months off with out looking for work and got hired immediately when I started looking. Increase in pay and much better quality of life due to my new company having expectations of 8 hr work days. I liked working for Cisco but the ER offer was too
good to pass up. Take it if they ever offer it again. Expecially if the hiring market is strong like it has been since October.

What are the rules for coming back after getting LRed? What is the wait time so you don't have to pay them the severance back?

It's usually 6 months, but at a minimum it's the same period as the severance package you received. I spoke with someone who was LR'd in late '20, and he came back early. Apparently he was needed even though he was "at risk" and the need was communicated up the chain to the VP who pushed to get an exception to bring him back before the blackout date expired. He said he had to pay back the pro-rated portion of his severance that corresponded to the period from the date of return to the end of the severance period.

In my case, a manager on another team had an open req and wanted to hire me, but HR would not waive the blackout and allow me to pay back the pro-rated severance. It took another year before that manager had another opening for me to come back.

Unless @1iea+1aeEE0xk was referring to me, I'm not the only person who's come back three times. Hell, he may be the person who told me about coming back after the Oct '20 LR.

After all the paperwork and final day. It's like 6 months or something.

But manager made an exception and brought back as contract. In which case I keep the $$$. But most have a wait period.

I saw many people come back. One person came back three times.

Weird, but true.

What are the rules for coming back after getting LRed? What is the wait time so you don't have to pay them the severance back?

For the life of me I will never understand the people who declined to take a severance package in any of the previous offerings.

You make it sound like Cisco has offered "voluntary" severance packages a lot. There's only been three such offers, and the first two were limited on who was eligible. I'm sure there were a lot of people who would have taken it if they were eligible to do so.

The first voluntary separation was the early retirement offered in 2011 to those over 50 whose age plus years of service exceeded 55. I was too young to be eligible for this one and didn't have enough years of service anyway.

The second voluntary separation was the early retirement offered in 2020. The eligibility criteria was more stringent. The age plus years of service had to add up to 62, not 55. There was a minimum age and a minimum years of service so that people who were younger, but lots of years of service were ineligible and those that were older, but were still considered new-hires were also ineligible.

The third voluntary separation was offered after the second early retirement, but was only offered to those who were deemed by HR as "at risk" of involuntary separation in Dec of 2020 if they didn't accept the voluntary separation in Oct of 2020.

All other separation actions were involuntary and Cisco wasn't allowing any one to volunteer for them.

But, yes, I can't understand why people wouldn't take the early retirement or voluntary separations, if eligible. For the retirements, find another job and if you don't like it, come back to Cisco at a later date with all that extra $'s in your pocket. For the "at risk", they basically told you that you were going to be LR'd later and that the package was less, so WHY let Cisco keep $'s for kicking you to the curb during the pandemic.

I've been involuntarily LR'd TWICE from Cisco and been hired three times, so I know that my previous LR's were not due to my skills getting old or for lack of keeping them current. i was LR'd due to AGE and high pay compared to younger employees. If I'm ever eligible for the early retirement, I'll take it in a heartbeat without a second's hesitation or remorse. And I'll pocket the third LR severance package when it comes along if I can't take early retirement before then because you know it will come sooner or later.

I remember several people who turned down the one year package.

Half a year later they ALL got laid off.

I talked to them later and they all regret not taking that package.

Hindsight is 20/20.

@1gvc+1aeEE0xk agreed. Take the money, smile, and move on. I waited for the LR and while the payoff was good - I did pass up other opportunities. Since moving on I spend at least a good solid afternoon once a month looking and posting resumes. Now three years out, it is crazy how much good high pay work is out there. Take a chance and go for it. You can always come back.

For the life of me I will never understand the people who declined to take a severance package in any of the previous offerings. Even if you love your job the smart move is to take the upfront money and use your time to aggressively search for new employment, polish up your resume, learn some new skills, etc. Even if it takes awhile to find a new job you've still received the easy money to devote 100% of your time to making yourself a better prospect for job opportunities. You can't beat that ROI.

Based on my personal experience with my ex-colleagues at Cisco I suspect the people on this site that constantly complain are the same ones with the deer in the headlight look once their numbers are called. Bunch of keyboard warriors and wannabe tuff guys.

LR'd almost four years ago and after 17 years, package was around 8 months pay.

That offer was the incentive for taking early retirement in 2011 and it wasn't offered to everyone. IIRC, you had to be 50 or older and your years of service plus your age had to equal or exceed 55. I was LR'd that same year, but it was called a workforce reduction (WFR).

While waiting to make copies of some paperwork at a copier, I spoke with a young guy who was very upset because his new manager who joined Cisco the year prior was 54, so 54 plus 1 year of service equaled 55 and was eligible for the early retirement offer, but this guy joined Cisco right out of college and had 17 years of service (joined in '94) and was not eligible for the early retirement and received the much smaller WFR/LR severance package.

The early retirement offer in 2020 was much smaller than the one in 2011. I forget the exact details, but it was about half the prior offer. The LR packages have also gotten much smaller over the years, to about half of what the '11 offer was.

The best offer was in 2011, the total package equaled 1.25 years pay. People who are offered a package and don’t take it can expect to be let go with nothing. I know people who rejected the 2011 package and they regretted it. So many people can’t see reality and they buy the we are family garbage.

I wouldn't turn it down

LMAO....and the answer is....”Hell No”. I witnessed people with 20+ years turn down the offer sent out in November ‘20. They all said it wasn’t compelling enough. Not anywhere close to what the original poster described. Sad that these individuals are risking potential LR now. That early retirement offer probably won’t happen again for many years.