Thread regarding Cisco Systems Inc. layoffs

question : if the numbers and quarter is so great , why did we push out 4 k people for rebalancing ?

People didn’t want to be fired in the early 1980s so we changed the name to layoffs. Then they whined about layoffs so we called it limited restructuring. Then they whined about limited restructuring and we called it rebalancing. Now people are whining about rebalancing and we’ll come up with new names in the future.

At the end of the day it’s all firing. You do this because there are people who are no longer useful to the company. Some might still be useful but are on their way to obsolescence (I’m not talking age - young people can develop and harden bad habits as quickly as old.) Doing it en masse gives cover to the weak because they don’t have to say they were fired and it strengthens the strong by forcing them to get out if their comfort zone and grow new skills. Timing is often driven by market events and now with government and monetary policies actively trying to reduce spending it’s considered a proactive action and therefore likely to reduce the impact to the stock which is that stuff many have in their retirement portfolio. Do you want to retire eventually?

Doesn’t look like such an amazing increase now does it?

Considering Cisco had products on backorder for up to 14 months it is pretty amazing. You can’t get revenue if your contract manufacturers can’t deliver and it’s not like there is excess production capacity elsewhere Cisco could leverage.

1. layoff people so cisco can pay fat bonus to elt and other higher ups
2. pays dividend to investors, stock goes up
3. go to 1

If it makes no sense, it's probably not true.

Have thought the same. Layoffs but great profits?

Bernie Madoff would have been proud.

Something not making sense.

Cisco says areas that did well are growing and hiring, yet people in security were layed off. Something's very fishy here. What's the real story?

@1wvy+1ld58QXe The stock bought back goes to the elt it’s not dissolved.

Cisco Revenue increased to 13.59 billion from 12.72 billion a year ago, what % increase is that?

6. 83% is what it is. What is inflation? About 6.4% from a year ago.

Doesn’t look like such an amazing increase now does it?

Let’s go further…. How many stock buybacks did Cisco do? Was it in the billions?

So if you lower stock supply, that increases earnings per share right? Starting to see how we beat all the time?

We have billions in cash so we can do this forever. Executives will be fine. Who is gonna suffer? Employees duh!!!

If you can’t read between the lines and see the only way we beat and look good for the street is stock but backs and pushing high earners out, hiring in career changers thanking god almighty they now make above $35k / new grads / outsourced work…is it starting to make sense?

Of course this decreases service quality. Cisco is sooooo happy to say that now 44% if revenue is recurring. What is that? It’s services and software licensing. Customers hate the new licensing and boy are they starting to get fed up with tac quality (I’ll get to margins in a moment). All this might be fine while Arista and juniper are not as feature rich, but bug testing our code and getting SH-T support on top of it…starting to see the picture yet? This is not to even mention that people aren’t renewing and buying PS contracts.

Now on to margins….I picked up on this before the earnings call, but it was mentioned there too. Product margins is shrinking rapidly while you guessed it — service margin is increasing.

GEEE I just can’t imagine HOW they are doing that?!?!?

Cisco isn’t gonna crash and burn any time soon but if you want to be rewarded for working very hard you lost your mind. You might be able to make good with your leadership chain and get some early or extra rewards compared to the rest of your team, but then what? Layoff target baby!!

So what so we do? The minimum, and maybe a LITTLE BARELY bit more than the job description if you’re the type that just takes pride in your activities like many of us do. But the days of sacrificing your personal time and life and family bonding in return for enough money to provide an amazing life are OVER!

Hey Cisco, if you want me in the other side of this push just fawking pay me 😂

I'd say same reason as other tech co's. With cheap money, Cisco was swimming in debt - even when we didn't need it and historically had huge cash piles off-shore.

Cisco has billions in cash reserves. What debt are we swimming in?

... Some areas ate sh-t and are on the decline, its right there to see in the earnings call. Those areas had the cuts, (it's) not complicated at all. Areas that did well are growing and hiring…

This most recent LR is the first one I can recall where the ELT actually came out and said it wasn't a cost-cutting measure was was a "limited restructuring". However, based on some of the people cut that I'm aware of, that's not completely true as they've let high performing SMEs acting as team leads go that were expensive hoping that the teams they led can carry on the work load w/out them. When the ELT calls a 3-5% cut across the company annually a "limited restructuring", you can see how people don't believe them when they do say it's not cost-cutting and is "limited" to areas that are not performing and are being cut. Besides, sometimes an underperforming area needs an infusion of cash, i.e. budget, to allow them to fix their processes, hire enough people to do the work, etc. to keep it going instead of saying goodbye to it.

Even better, stop acquiring companies or technologies and then closing it down or selling it off for a fraction of what Cisco acquired it for. Flip camera anyone? We didn't even try to sell it off to get any money back for it. Acquiring NDS for $5B and then selling it off for less than $1B?

Why? Because they get off on it

Why do you sacks of anxiety keep searching for some conspiracy theory when the answer is simple and right in front of you. Some areas ate sh-t and are on the decline, its right there to see in the earnings call. Those areas had the cuts, its not complicated at all. Areas that did well are growing and hiring…

I'd say same reason as other tech co's. With cheap money, Cisco was swimming in debt - even when we didn't need it and historically had huge cash piles off-shore. Now that's not so easy to come by, gotta tighten up.