Thread regarding Cisco Systems Inc. layoffs

Cisco Layoffs Q2 FY25

Cisco Currently has 90,000 employees. Chuck is exiting Cisco and Gary Steele (former Splunk CEO) has been tasked with reducing Cisco's headcount by 50%.

2024 Y/Y Revenue was -10%
The disastrous Q1 FY25 Layoff fiasco cost Cisco an entire quarter of productivity.

50% brings Cisco down to 45,000 employees.

This will be achievable by Cisco exiting several businesses and reducing headcount in all regions.

The next 12 months will be horrific.
Think Game of Thrones meets the Hunger Games.

Winter is coming and may the odds be ever in your favor...

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| 3411 views | | 17 replies (last October 19, 2024) | Reply
Post ID: @OP+1uWjqA7e

17 replies (most recent on top)

No ER and not giving LRs to those who offer up.

Companies not paying the people most able to leave and work for their competitors to do so. For business which holds a legal obligation to its shareholders that's great leadership.

Do they not teach economics in high school anymore?

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Post ID: @8ckj+1uWjqA7e

No ER and not giving LRs to those who offer up. If you are 20+ year employees - bohica. That's a 6 month slap in the face and wallet for your time as well as medical. What absolute trash "leadership" that's being exhibited.

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Post ID: @6cue+1uWjqA7e

Actually, future will play out with small layoff mid November, healthy one 2nd quarter 2025 and then nothing until after the AI bubble burst 3rd quarter 2026

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Post ID: @1upx+1uWjqA7e

Cisco has a market cap of around $213,620,000,000.00. Revenue(ttm) is roughly 53,800,000,000.00. Cisco has no competitors even remotely close to this scale. It still has an operating margin(ttm) over 20%. It's stock closed at a 52 week high today. If Cisco loses 90% of its revenue it may still be bigger than what's left of Juniper after pieces of it and Aruba Networks are paired away in the joining inside HPE.

So you assert they knock off say 5,000-6,000 of 90,000 and are somehow left with 90,000, and having already told the street they only have 20-30% of the billion dollar charge for layoffs left over and you think they're going to layoff half the company and blindly shut down products rather than spin them out when they can't even keep things stable without such an insane shock, and you can't even offer the slightest speculation about why this would make sense even to someone who is insane? I call shenanigans.

Unless the stock does a Chambers and enter the teens yet again you'll have a smaller layoff announced by February and another announcement of layoffs under 10,000 by the end of the fiscal year. People on this site have discussed selling a golden goose or two over the years but Cisco doesn't really have a particularly valuable piece that works better on its own.

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Post ID: @1mhz+1uWjqA7e

Where are you getting your information from?

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Post ID: @1ruo+1uWjqA7e

Rats are the last passengers to leave a sinking ship.

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Post ID: @1tth+1uWjqA7e

Okay Mr. Obvious, winter is only a couple of months away. of course it is coming.

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Post ID: @1smt+1uWjqA7e

You are totally wrong, Cisco only has 75k headcount after mid November, the earliest time for the next round LR will be February 2036.

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Post ID: @1xha+1uWjqA7e

Cisco will not offer “Early Retirement” any more. Just reduce headcount by PIP, Firing and rest by LR. Rest get scared and quit on their own.

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Post ID: @1nhl+1uWjqA7e

60K worldwide is the sweet spot for a big tech company to get acquired so it might look like 15K in late Winter and another 15K in August. Maybe less, maybe more.

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Post ID: @1twx+1uWjqA7e

How large was Splunk?
Not sure the math works

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Post ID: @ohd+1uWjqA7e

If your boss likes you and you are a yes man, you have to nothing to worry about . This toxicity goes from leadership level to down.

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Post ID: @lho+1uWjqA7e

Yahoo, there we go

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Post ID: @bpx+1uWjqA7e

Source ??

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Post ID: @wrb+1uWjqA7e

The toxicity is intentional. The next LR cycle will have similar dynamics:

  1. rumor drop prior to Q2 earnings call
  2. LR announcement
  3. 30 day agonizing wait. (This time the announcement will be Mid February with axe falling around March 15)

They do this in order to create maximum stress knowing that 5% will just quit before the announcement and give up their package.

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Post ID: @rba+1uWjqA7e

Fingers crossed they offer an ER

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Post ID: @ezl+1uWjqA7e

Let them take my job so I can take 2025 off. Life is too short to be stressing over a j.o.b This company is literally sending people to the hospital sorry but it’s not worth my health.

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Post ID: @fkz+1uWjqA7e

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