Thread regarding Cisco Systems Inc. layoffs

Maserati? Nah, a couple of high end Teslas. Had one exec wax poetic for half of a meeting over their Telsa.

@ Dr. Death - So, so, true on many fronts and damn that was funny! Keep it coming, please.

@21ac: unfortunately that's the way the world works. Not just Cisco.

@2xgm: I agree. It's about feeding The Beast. The Beast needs very high margins coming from the shipment of boxes and add-on over-priced services. Both of those are a things of the past and The Beast hasn't adjusted.

Sooooooo....only a few options left:

• Try and buy your way out with your overseas fat war-chest and hope those new (hopefully young/cheap) hungry minds bring in new ways of thinking and revenue streams @ high margin

• Leave the blessed high-priced ELT staff in place, do analysis of the worker-bee population showing who provides the most risk exposure (e.g. over 42, high comp ratio, large family and/or one w/ chronic illnesses) and start throwing bodies over the side. If you determine you needed that body that is now gone, call 'em up and offer to rehire at 40% discount. If they say no....hire a college new grad at a 50% discount.

• If you are in the ELT....stay the course! Your Fat, dumb and RICH BEOTCH!! By the time the Board and the Street determine you are on a collision course with disaster, you'll have the 3rd home paid off and the new Maserati in the garage. Continue to do a lot of nothing besides "financial engineering" and give yourselves a raise every year because you have cut cost (not raised margin/profits) and beat street estimates bu $0.01. Hooray..you ARE GREAT! Don't shoot the goose that laid the golden egg.

Any other theories?

"Only hope for Cisco is Services consulting & security"

If that's your solution, you are sad indeed.

They've proven they can't develop new technology and acquiring major revenue growth above $50B/yr with extreme margins is clearly reaching its limits. That doesn't leave many options.

"Only hope for Cisco is Services consulting & security"

If that's your solution, you are sad indeed.

@ wjw. Wait for another 4 quarters of declining revenue with shrinking profit margins. Not only SDN, but general trend towards cloud providers also will crush the enterprise / data center switching revenue. IoT will barely generate any steady stream for Cisco as this market is already saturated with very thin margins. Only hope for Cisco is Services consulting & security. But providers like AT&T,Facebook have already started looking at the white boxes. Cisco's expensive products & solutions would eventually loose the market share. Cisco normally acquires the innovative companies but then fails to integrate it with successful products & services. So 3 years later it results is complete loss of revenue & investment followed by big layoffs. Cisco's ELT is clueless to handle the current disruptive market trends. It is a big worry for cisco shareholders.

There is really nothing Cisco shareholders need to worry about.