Spin This: Cisco To Fire 10,000 (double the previous report)

[stockholmer]

http://www.zerohedge.com/article/spin-cisco-fire-10000

A year after the outgoing secretary of the treasury top ticked the economy and ushered in QE 2 with his abysmal NYT op-ed "Welcome to the Recovery" it is only appropriate that we get news http://www.bloomberg.com/news/2011-07-11/cisco-may-cut-about-5-000-jobs-in-august-gleacher-analyst-says.html that Cisco is preparing to fire 10,000, or 14% of its entire workforce, over and above the number of people that the company said was going to be let go in May. "The cuts include as many as 7,000 jobs that would be eliminated by the end of August, said the people, who asked not to be identified because the plans aren’t final. Cisco, based in San Jose, California, is also providing early-retirement packages to about 3,000 workers who took buyouts, the people said. Cisco Chief Executive Officer John Chambers is slashing jobs and exiting less-profitable businesses as competitors such as Juniper Networks Inc. (JNPR) and Hewlett-Packard Co. (HPQ) take market share in Cisco’s main businesses with lower-priced, simpler products. Sales of Cisco’s switches and routers, which made up more than half of revenue last year, will continue to slip, said Brian Marshall, an analyst at Gleacher & Co."

All in the name of the bottom line: "Eliminating jobs will help Cisco wring $1 billion in expenses in fiscal 2012, the company said in May. Cisco expects costs of $500 million to $1.1 billion in the fiscal fourth quarter as a result of the voluntary early retirement program, it said in a quarterly filing."

“We will provide additional detail on the cost reductions, including layoffs, on our next earnings call,” Karen Tillman, a spokeswoman for Cisco, said in reference to an earnings call scheduled for early August. She declined to discuss job cut figures. The voluntary retirement packages included one year’s pay and medical benefits, and were offered to about 5,800 employees, two people said.


snip

We expect many other companies to follow suit in order to eliminate even more "overhead", or as it is better known, fat. And while S&P500 EPS may get a modest boost out of this latest upcoming firing wave, it means that the next leg down in payrolls is imminent.


snip

[MADem]

1. They're doing a massive "youthful geezer early retirement" thing, too....

I know one who took the package before getting the boot.

The Cisco Kid was a friend of mine!

[neverforget]

2. Good thing we're talking about debt, deficits and how much we should make

the poor and middle classes suffer in the middle of a recession/stagnant economic growth.

:banghead:

[theophilus]

3. Cisco needs more tax cuts, obviously. n/t

[OhioChick]

4. Are any of these job cuts overseas? n/t

[givemebackmycountry]

5. Juniper Networks is getting ready to eat their lunch.

How do I know this?

This is my business, and we are slowly introducing Juniper routers into our network in advance of the NEXT big thing, Ethernet based services.
What is Ethernet based services you may ask?
It's cheaper and it eliminates the biggest expense of any major telecom expenditure, the last mile.
Or what's called the local telcos, (think Verizon) that take major services from the curb (actually their central offices) into your business.
Cisco is not stupid, they see the writing on the wall and they are gearing up for what is sure to be a major hit.

We just ran a bunch of people through Juniper training and most agreed, it's so much easier than Cisco.
If you know what it takes to get advanced (and I mean really advanced) Cisco certifications, weigh in.
If not, you have no idea how difficult and how complex this shit is.
It makes calculus look like 2+2.

[hfojvt]

6. so Cisco is dead?

http://www.youtube.com/watch?v=97RjuC9YeXg

[givemebackmycountry]

7. I didn't say that.

I did say, they are not stupid and they see the writing on the wall.