Thread regarding Cisco Systems Inc. layoffs

Earnings fine print 900 million in severance •boom•

Investors.cisco.com

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Post ID: @OP+16pltIQH

28 replies (most recent on top)

150k per head would be all gr 4 and gr6...not realistic. Looks like ER first, to see if they can reach their intended reduction goal and Chuck can keep his word from April that Cisco would not contribute to the layoffs of the pandemic, so no panned LR presently. ER with the red badge reductions going on may suffice for now...who knows

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Post ID: @1lkr+16pltIQH

major spikes LOL:

https://twitter.com/TheLayoff/status/1293721375056699393

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Post ID: @1ili+16pltIQH

Old Per head exp estimates: @1txx+13tnPGqZ

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Post ID: @1naz+16pltIQH

900M expense divided by 150K expense per head cut = 6000 heads cut

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Post ID: @1jgv+16pltIQH

If the CFO is jumping ship, it means the road ahead is bumpy. Or she's getting a really good ER package, too good pass up.

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Post ID: @zgc+16pltIQH

so kelly is not culpable for those numbers, shes CFO, and she already cashed out, hope V2momma and her traler wide tail goes out next, bring back a smart old white guy to get business back in order, not some miami slick oil salesman booted out of salesforce to run it into the ground.

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Post ID: @bwy+16pltIQH

“We’re actively involved in the community trying to help people who’ve been impacted by this, why would we contribute to the problem?” Robbins said in an interview. “There are companies whose revenue has gone to zero who have no option. To me it’s just silly for those of us who have the financial wherewithal to absorb this, for us to add to the problem. It’s illogical.”

Many have changed since April...

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Post ID: @mkl+16pltIQH

The big wigs will be the only ones eligible for the big ER.

The masses will get the 'lil LR.

Want the big ER? You will get nothing and like it! https://youtu.be/FuNJq_wI1ns*

*Try to keep a sense of humor. Been through it. It will all be ok. Just don't get ER ENVY :)

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Post ID: @yrr+16pltIQH

Nothing has been announced on the ER - I suspect the size of the LR will depend one how many accept the ER. But that will be governed by how strict the criteria are.
Maybe details tomorrow for the “Leaders all hands”
But then, I don’t see them waiting around for a few months to “wait and see”.

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Post ID: @edc+16pltIQH

I found that footnote as soon as it hit the web. They always have it in the GAAP to non-GAAP reconciliation. But during the call, it was mentioned. One analyst asked about taking costs out as $1B was mentioned as a cost reduction, and he asked how much would be OPEX and when?
She said 80% and it would be mostly in Q1 because other countries will take longer.

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Post ID: @hck+16pltIQH

if the ER pkg is similar to the last one I may just give myself a stroke with how quickly I accept :)

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Post ID: @nmz+16pltIQH

so what percent of severance is going to ER vs LR? im guessing most will be ER??

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Post ID: @rjh+16pltIQH
I am not sure whatever early retirement package they would have for the regular folk has anything to do with what K is getting, though we can all dream

I knew a newly promoted Director took the 2011 ER package within 3-6 months of being promoted to Director. But, CFO is several orders of magnitude greater than Director, so I imagine hers is definitely better than what the regular folks are getting. I just think it's a sign that it's a pretty good package. Or maybe it's just the CxO's taking care of each other giving themselves great retirement packages.

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Post ID: @eze+16pltIQH

I am not sure whatever early retirement package they would have for the regular folk has anything to do with what K is getting, though we can all dream

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Post ID: @stm+16pltIQH

Damn, I watched and listened to the earnings call and didn't hear about that footnote. Sneaky b–tards.

I noticed that Chuck sent out an email thanking Kelly for her service as CFO and saying she'll stay on during the search for a replacement and make it a seamless transition. I guess she's grabbing the early retirement package. Can't be age 60 + 10 years of service. She graduated college only 2 years before me and I'm 5+ years from being age 60.

It's going to be an interesting few weeks watching for the announcements.

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Post ID: @iwv+16pltIQH

"Where did you see this?"

From the Press Release: https://s2.q4cdn.com/951347115/files/doc_financials/2020/q4/Q4FY20-Press-Release.pdf

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Post ID: @bhj+16pltIQH

Time to remove the 20 year + oldies in the UK who just passing time and not good skills. Too many old hands. Holding biz back

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Post ID: @dfm+16pltIQH

Looks like Kelly took early retirement. She is awesome, I'll miss her.

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Post ID: @bvc+16pltIQH

I know they must be out there, but I don't think I work with anyone that would qualify for a 70 target. Seems like a lot of paperwork to take care of a tiny group of people.

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Post ID: @wnl+16pltIQH

I am not buying this 70 target. Nothing specific has been communicated. Is this real or not?

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Post ID: @kec+16pltIQH

What is the ER package and what is the target? 75?

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Post ID: @hpn+16pltIQH

Average will be $300k as this will not be as a generous offer as the one in 2011. After ER, LR will follow shortly. Most red badges in my team were not renewed, so this is good news for us in blue.

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Post ID: @njk+16pltIQH

450k cost to company for an ER...based on data from 2011....could be completely different now...reg LR package around 150-200k depending on grade and salary, years of service, PTO....so in ballpark. if you have better math or knowledge, please post

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Post ID: @qjw+16pltIQH

How do you get $450K per head? That seems way high.

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Post ID: @vwj+16pltIQH

Doing some back of napkin calculation number is around 2000 ...

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Post ID: @xok+16pltIQH

not really a lot of money....at 450k per package all in, including health, PTO, severance...etc only 2000 people taking ER and maybe double that if it is LR only. Anyone seen communication on this or know anyone who was offered ER?

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Post ID: @kga+16pltIQH

Where did you see this?

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Post ID: @mpw+16pltIQH

That's a lot of money for "foot note"

(1) In the first quarter of fiscal 2021, we initiated a restructuring plan, which includes a voluntary early retirement program, in order to realign the organization and enable further investment in key priority areas with estimated pretax charges of approximately $900 million consisting of severance and other one-time termination benefits, and other costs. We expect to recognize approximately $800 million of these charges in the first quarter of fiscal 2021 with the remaining amount to be recognized during the rest of the fiscal year.

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Post ID: @har+16pltIQH

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