A q4 layoff would be outside the norm for Cisco. How would that impact your comp? If you got LR'd in mid may and were out mid June you only get credit for what you booked. Does your goal get reduced to reflect that? Its a lot easier when they rif you end of year. I would hate to think Cisco has low enough confidence to make large scale changes on the fly and more frequently. Its also sad where Cisco is piling cash into acquisitions of companies with little revenues. They could take of the 50 Billion over seas cash to invest in the company's vision and have a real people deal. The current leadership and aging board are too concerned with keeping the stock price up. They boast about the stock price yet its trailing the overall market and way behind the large new tech stocks. Look at Arista, 45 to 140 a share in a few months. Cisco is happy with 28 to 34.
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India will be fine. We are going to increase investment there.
will this LR will affect india/bangalore too ? when is the expected date for announcement
When you say leave date, is that the date they give the notice (May 18), or do we have to wait for initial 30 day period, then we get the cutoff (June 18)? The latter would be painful as most of our bookings for Q4 don't hit until end of Aug, and most of that stuff won't ship until Sept/Oct. We'd be cruising thorough May / June carrying quota but not getting any bookings because business won't book until last week of Aug.
Also I've heard we get 90 days to realize any shipping, so if they cut you off in May or June, we still get paid out for 90 days on stuff that shipped into Aug. Is that true?
@vhz That's what happened to me but it will be to your leave date not the whole quarter. So yes, in theory you could appear to over-achieve.
So do they just chop off the Q4 aspect of the goal? If one had 1m goal per quarter (goal of 4m) and you were at 3m for the year, do they just chop off the last part of the goal, meaning you're now 3m on a 3m goal?
In year RIFs have happened for several years. It's the new normal.
Sales comp gets pro-rated to your leave date. It's dead easy for Cisco to implement, the functionality is already there for people that change plans mid-year anyway.
You won't get comped on anything that's in backlog when you go and in fact, because your goal gets recalculated, you might get less than expected.
Until tax rates on repatriated cash is reduced the $50Bn is staying overseas. Even if they did bring it back the suspicion has to be that it would be returned to investors rather than invested in growing the business. Remind me, what's the people deal?
Cisco is seen as a relatively safe stock for investors. It's consistently profitable with steady growth in capital value. For most institutional investors companies like Arista that have a volatile share price are more risky. They are looking for long-term, stable returns. Cisco has consistently delivered that.