On November 16, 2022, Cisco announced a restructuring plan in order to rebalance the organization and enable further investment in key priority areas. This rebalancing will include talent movement options and restructuring. Additionally, Cisco will optimize its real estate portfolio, aligned to the broader hybrid work strategy. Cisco will take action under this plan beginning in the second quarter of fiscal 2023. Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $600 million consisting of severance and other one-time termination benefits, real estate-related charges, and other costs. These charges are primarily cash-based. Cisco expects to recognize approximately $300 million of these charges in the second quarter of fiscal 2023, approximately $200 million of these charges during the second half of fiscal 2023, and the remaining amount of these charges primarily through the first quarter of fiscal 2024.
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This event also mask cutting older and high cost individual regardless of performance and hiring lower cost employees
Nothing new about that. Cisco's been doing that since 2016 or longer.
Happy for the folks who get severance that wanted it! I’m a red badge who is freaking out over the fact that I may not be able to pay rent soon lol.
Yes, I was in that boat more than once at Cisco. I watched as several red badges got suddenly terminated only to come back to a different team doing similar work just to get suddenly terminated the next year from that other team.
Good luck to you. Red badges are people too and don't deserve to be treated that way. They're renewed quarter-by-quarter. They should get a quarter's notice that they're not getting renewed and allow them to look for other jobs while working instead of just yanking the rug out.
This event also mask cutting older and high cost individual regardless of performance and hiring lower cost employees
There’s a new Leader Checkin today at 4pm pacific. I’m sure the emails will start going out after that.
Happy for the folks who get severance that wanted it! I’m a red badge who is freaking out over the fact that I may not be able to pay rent soon lol.
Read carefully - all orders (bookings) are in decline. Cost cutting has to happen. Not I agreed with LR but saving money has to happen...
Which means the layoff may happen later this month or early Dec?
In the past, once an LR was announced in an earnings call, the 1:1 invites w/ your manager went out within a couple of hours and you were notified the next morning. I had a co-worker who had submitted a PTO request a month ahead of time for the earnings call and the manager had to approve it knowing he'd have to call the employee and let him go over the phone while visiting family.
Am I reading this right - there will be 3 waves, the big wave by the end of this year and than two smaller ones next year?
One can't say as one of these waves might be "real estate-related charges, and other costs"
CSE org getting trimmed.
Am I reading this right - there will be 3 waves, the big wave by the end of this year and than two smaller ones next year?
Sounds like anyone on the OPEX side of collab should be ready for the calendar invite and make sure their resume is up to date.
Hopefully, CSS takes the biggest hit. Everyone I know in CSS works 2-3 hours a day during Covid. What a joke.
2K views in 30 min hahaha
the entire org is on layoff.com right now
We're in Q2 FY23 already right?
Which means the layoff may happen later this month or early Dec?
Sounds like LOTS of offices going to get shut down. Where is that RTP guy with the 19 year middle finger when we need him?
Rightsizing certain businesses. We will find out the gory details tomorrow on CHECK IN in CHUCKIE and FRAN show.
Was asked on analyst call. Chuck wouldn’t answer until he has the internal call tomorrow morning. But he said he’s GROWING EN and Security.
Vote up if you think the big cut will be in the overlay Sales
Vote up if you think the big cut will be in the BU
Vote up if you think the big cut will be in Sales
Vote up if you think the big cut will be in CX
Will they close Lawrenceville?
Vote up if you think the big cut will be Data Center
Vote up if you think the big cut will be Security
ELT ready to buy their Big Ticket Xmas items...what else can you do? Another plane, another island?
Vote up if you think the big cut will be Enterprise Networking.
It's Fran's favorite time of the year.
Vote up if you think the big cut will be Collaboration
@qhd+1jJPU8Fh collab and SP was a bloodbath
Chuck said it’s 5% of the workforce.
What technologies were weak in the earning call? Trying to assess where the cuts will be?
@xwl+1jJPU8Fh Holidays? Q2 already started.
$600 million in LR packages, that's about 8,000 employees. LR will start in Q2, so we are safe for the holidays.
RTP will be shuttered completely. That RTP dude is finally correct. He has been saying that for the past 12yrs.
Last big one with ER was 1 billion. So not far off. And this time it’s after massive attrition.
What was the amount of the write-off from the last ER and LR? Trying to compare to this announcement.
Bye bye RTP
Utter insanity.