Thread regarding Cisco Systems Inc. layoffs

FY21 Package is NOT nearly as good as FY11. Less than half as generous..

This ER has to be generous, or it won’t work for me. This is not lke an LR, where they are paying to see your backside walk out the door, and create no fuss. ER is saying, yes, i know you wanted to work until 65, but here is an accelerated payment plan. It’s meant to allow people to retire. But if it’s just 6 months, then that doesn’t make up for four years out of work.

If the rumors of a poor ER package are true, then why bother with an ER, it will just get called for what it is.

Politics and PR. It will look a lot better inside the VIP tent at the Masters golf tournament.

If they wanted to be REALLY nice, the payout would not be until Jan 1 2021 where you can at least hit a lower tax bracket.

Yeah, they’ve already ruled that out, very firmly.

If they wanted to be REALLY nice, the payout would not be until Jan 1 2021 where you can at least hit a lower tax bracket. Are they that smart/nice? Not likely.

If the rumors of a poor ER package are true, then why bother with an ER, it will just get called for what it is. So why would they try to low ball. If they really want people to take ER, then it is going to have to be a lot better than 2009/2011. 6 months plus 1 month for every year over 10 is low ball. I have 17 years with the company, and am in upper 50's I would not trade that for that package. I'll take my chances, and keep working as if nothing was announced. It will be fun to see the value the ELt places on long time employees who buildt the commany.

supposedly it's announced tomorrow.

a year salary is not a phenomenal deal, but it also isn't bad. keep the taxes in mind. for many long timers your severance package paid out in September will push you into the top tax bracket for the year.

i worked in Cisco for 17 years and my LR package was nearly a year. I found another job within 3 weeks (but did take 2 months off).

i seem to recall the first early retirement package (was it 2009) was spectacular, like 2 years of salary and 2 years of medical... and it was offered to everybody and many key people left (and worked for competitors right away). shame i didn't qualify.

saving a bill in operating expenses is quite a few heads, and you know the current leadership team is only good at cost management. i'd advise anybody that qualifies for ER to take the money, take a month or two off to take care of yourself and take a fashionable coursera class or two, and then go elsewhere. the market ain't bad even with covid, really.

good luck ex-colleagues!

of course you take full PTO , 180 hours, nice payout but be warned , at other companies you will actually have to take PTO/VACA hours to survive, not take calls from beach or mall walking.

@vus+16tn4uNj...so you think 8 months salary, plus the pto, plus the cobra, plus (if over 50) rmap is a bad deal?

I LR'd three years ago and had zero complaints with that type of payout. Had an equivalent job however very quickly, so fortunately banked the whole lot. Not sure how it will be this time...Good luck folks

The question was asked about whether the payouts could be better timed for tax reasons. Absolutely not, was the answer. I’m sure the soon to be ex-CFO will not be denied favorable payment terms.

Cisco recently paid 8 months of salary ( 5 months on payroll + 3 month for signing paperwork to not to sure Cisco) in Feb'2020 layoff, plus 1 wk for every year above10 years of service and Cobra plan. It should be at least better than that. Otherwise folks will wait for so called generous voluntary layoff package.

Don't get too excited. Much will go in taxes. Thanks Uncle Sam.

PTO is usually just paid in full. That's yours to keep (and hence it has always been a liability to the company).

How is PTO handled for ER... Do they pay for unused days on top of ER payout?

@qir+16tn4uNj "Severance = 6 months salary, plus one month for every year after 10. No word on the targeted incentive amount. ". You sure it's not 1 WEEK for every year after 10?

I'd be very surprised if it were "week" per year as there is no incentive for the ER then and no one would quite likely take it so Mgmt could just wait and LR everyone and give them the per week offer.

@qir+16tn4uNj "Severance = 6 months salary, plus one month for every year after 10. No word on the targeted incentive amount. ". You sure it's not 1 WEEK for every year after 10?

I heard:
Severance = 6 months salary, plus one month for every year after 10. No word on the targeted incentive amount.
401k (same): one time payment equal to approx. 2 years of company matching contribution
Health benefits (same): Lump sum payment equivalent to 24 months of current medical, dental and vision coverage

You can use the lump sum medical ins payment to continue participating in Cisco's plan (via COBRA) or shop for your own plan. If you choose the latter you cannot go back to COBRA. Either way medical ins is expensive regardless of the service provider you choose. For UHC average is $700/month for the individual or $1500/month for individual and partner.

If they offer the same package as 2011, they should have any problems with finding enough volunteers. But somehow I doubt the package will be as lucrative this time around.

Rumors are package will not be as lucrative. We'll know on Tuesday.

Wow. What are the chances they match that in 2020? Also, lump sum medical, does that mean you have to shop for your own plan, or is that money to continue participating in Cisco's plan for the 2 years?