The rumors are true about the layoffs, but the spin is total bullshit. This layoff is not about a transition from hardware roots to a software stance. This is about the new leadership team taking out cost by letting older more experienced people to make room for "early in career" people who get paid a lot less. A huge portion of the people getting let go are complex technology overlay engineers and sales people, as well as developers working on cloud and virtual networking solutions. Cisco has lost it's appetite for the joint development models that have enabled us to enter new markets and the joint go-to-market models that have made Cisco an attractive partner for systems integrators and service providers. The new model is to go it alone, direct selling, with a cheaper less experienced field. Think Digital Equipment Corporation. Thanks Chuck, great job.
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I happen to be a director. I was asked to provide two lists- one for 10% reduction and another with 12% reduction. I was appalled that hr wanted us to go after those above grade 9 while leaving early-in-career people alone- even is EiCs were not doing a good job. The new model is fewer sales/SEs (they are too expensive) and use partners for services and sales. Back to building boxes to ride that ICMB to the ground with some support SW. We will be a somewhat profitable $30B in five years.....but at least margins will be ~60% so investors will be happy.