Heard it will start with massive red badge cut....
Then massive full time cuts.
Compared to any earlier cuts, this seems real big.
Next 2-4 weeks you will see many changes.
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Some units will be affected more badly than others... Cisco Capital will eliminate entire country operations... US announcement starts today Aug 17th, then it will go to APJC within a week.
BY the way last time when two presidents, CTO, CFO, and a large number SVPS resigned and left was due to this layoff disagreement with Chambers ! Then he found and new CFO and CEO to just run the company for few more quarters ! They do this for few years and make few hundred million dollars and then leave and hand it to next ! At best Cisco is a system integrator and broker that hires people buys companies and build networks ! When time is good for sales they enjoy but when rubber hits the road they really cut and act very wild and stupid ! Not a good company to commit to for career ! I feel VERY SORRY for the young grads who join Cisco ! They think they have it set poor kids and then get hit with layoff after they have committed and dedicated to the company !
Cisco has an age and salary cost reduction plan John Chambers has implemented 10 years ago. They did execute two phases of it and now is the 3rd phase !
Basically after he announced dividend and share buyback Cisco came short on REAL CASH FLOW (not CSCO ownership !). Since short on cash and they have to pay R&D and Dividend and Buyback Shares they need HARD CASH ! Investors suggested line of credit and Deep Job Cuts with salaries and grades that cost $100K and above. They also suggested to hire and replace older experience workers with young college grads and cheaper to run them for few years and then lay them off and recycle with new grads every 5 years ! So the have a Buffer First Come First Out ! Note that Cisco claimed $48 Billion Cash is not Real money at the bank and Cisco stock that Cisco itself owns ! Therefore the company is trapped with $48B Stock that cannot sell and hence lays off and controls cost this way. Used to be a good company until this Dividend and Buyback game just like IBM hit Cisco too. Good luck all.
I wonder if the 7500 figure is FTE and contractors or FTE only ?
But is the LO package going to be good as earlier ? like 5-6 months salary .....
Most of my colleagues have 15+ yrs of service. We are just hoping to get a good package. Most of them are just hanging around to get a package! I've been waiting, I hope I'm the lucky one to get a LO package and then move on!
Been with Cisco 10 Years, Talked with my Sr. Dir last week. Overall guidance was 8-16% Opex Reduction across the company with a few select teams that will not be touched so some will be closer to 20%+. I believe a 10% cut across the company is highly realistic so in the 7500 person range. Last I heard is Americas notifications will happen either on August 9/10 or the morning of the announcement so Aug 17th.
Any rumors on a new Cisco early retirement package offer ?
any further update/news latest ?
@2vwd - it all depends on what'll be reported to the street. we've seen in the past that when numbers do not look good they announce the debacle but they pad it with another announcement that focuses on cost cutting - this helps them soften the blow.
if you look at what happened with Qualcomm, Intel and Seagate recently, they followed the same recipe - the announcement about job cuts was served in conjunction with the poor financial results announcement.
Should the numbers look good, it's unlikely this scenario will be followed, and the job cuts announcement will be published based on whatever they (execs) think will work the best for them from the PR or operational perspective.
Let's not fool ourselves. 10% is not unreasonable. Just remember this:
http://www.bloomberg.com/news/2014-08-14/the-chart-that-helps-explain-cisco-s-6-000-job-cuts.html
I agree that 10% of total is probably a bit much, but not unheard of. That is especially true in today's world of redeployment of resources abroad, automation opportunities, productivity squeeze and sheer macroeconomic/global volatility. Likely it will be some combination of contractors and permanent full time folks (contractors are already under the knife). Let's say 5% each that makes up 10%. Cisco will have to to maintain the 'fantastic' results reported a quarter ago by flooding the market with unemployed people so that the shareholders and board are happy. Otherwise, captain may be on the way out.
Q4 FY16 call is scheduled on 18th Aug. As a comment suggests here that first August doesn't make sense. I would suggest wait until next week. I am sure people will start receiving notices next week if LR is really happening. I heard plan is to complete notifying affected people before the Q4 call. Let's wait and see. Stop speculating I believe.
Agree that there's no way 10% of workforce will be laid off, unless they're including contractors in that number. Also, layoffs are typically announced the week the quarter ends so Aug 1 doesn't make sense as a notification date. Sounds like some trolls are lurking.
10% of Cisco employees is a massive number. Typically, layoffs are in small single digit percentages. This equates to 7150+ people. That is huge and it amounts to 10s of millions of $s if not hundreds of millions.
Price to pay if you continued to work for a sinking ship. Good Luck everyone!
any word on Early Retirement?
I have also heard that massive LR is coming from multiple sources and got a confirmation from a senior director too. Names are already finalized and people will be notified starting from the first working day of August.
Earnings report is scheduled for August 18th. . .any announcement of lay-offs will be by this date as the reduction materially affects the company and notification can't be withheld until after earnings are released.
I heard close to 10% FTE cut coming...that is not massive I think....
Contractors go first.
Employee announcements will probably be after FY 16 closes (July 30)
Rumor is that it will be massive
I also have another week of my contract and it is not being extended beyond that.
My contract is not being extended into Q1...i am one of the unlucky....GIS is cutting jobs due to budgetary constraints..
At least that is the word around the department.
Red badge? Is it contractors or partners? I heard they may recruit more partners removing blue badges.
Gut feeling, that's it, right?
Hmmmm. Want to give us a rough idea where your Intel is coming from? Ballpark.....nothing specific is necessary.