Do you think they'll double up this year with a Q3 and Q4 LR - as in large action? Smaller LRs have been happening all year. Wondering what the final number could be between the two quarters?
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1100 employee will be LRed in Q4 i.e. before end of July 2017.
Chuck will announce new LR target in August 2017 for FY 2018. I guess most likely it will be 5% to 7% as usual.
No more LR's. They've already have 7 in the past 7 years and let go of over 25,000.
How many more can they have? Lol
The writing is on the wall and regrettably there doesn't appear to be an end in sight for the LR's any time soon. The numbers are not where they are supposed to be and shareholders on Wall Street are not going to be happy with their investments tanking almost 10% overnight so fully expect that there well be more remedial action at the end of Q4/Fiscal year.
So, this morning's meeting in the CFO office - FY18 planning (ok, it started many weeks ago). Guidance is -4% to -6% over the 4th quarter. CFO wants margins to remain at > 63% but revenue expected to reduce approx. 5%, so needs to have a plan for next earnings call. Obviously, this requires about an 8% reduction in Opex (more than 5% - need to get in front of curve).
You figure it out.
In fact, she probably cannot wait that long. If she knew back when they started this LR, what they know now, there's no way they would have limited it to 1100. In fact, they probably might have had a suspicion as to how bad it could get, but it takes quite a bit of time and planning to cut out 8% of employees without murdering the day-to-day business - especially the most profitable bits.
100% yes! They didn't want to shock to share price.
Yes, another big one in Q4.
Go back to doing your job and stop wasting time on this site.
Clearly this snowflake didn't bother to read what they wrote...
We have layoffs each quarter. So what.
Cisco is an at-will employer. If you don't like it quit. Go back to doing your job and stop wasting time on this site. Or, if you forgot how to work, please continue shivering in the corner of your quiet room wondering what come next.
Absolutely, this year was worse than many previous, and if they had q4 layoffs in those years, then why wouldn't they this year when it's worse? Second, if q1 is forecast to be as bad or worse than q4 was today, you can bet there will be more bloodbaths. Cisco is just like how IBM is now, layoffs every week. Go read their board to see how bad Cisco will get.
I'm sure the Sales teams have picked up by now that we only have 2 x hotels booked for GSX. We normally have 6-8 hotels....
Same as the "old days" LRs will continue quarterly until company morale improves....similar to the saying...break off a piece and paint to match. Helps them ensure they can make the number each quarter.
I was a bit surprised by the announcement today. Knew there was one coming in Q4 based on history, but in q3? Yikes. Any ideas or opinions on how many more jobs will be cut in q4? Wondering if the action announced today will have an across the board impact or focus mostly on lines of business struggling (NDS)?
You really have to ask? Of course there will be another big layoff after Q4.
HR already has names on a list ready for additional August LR prior to GSX Sales meeting in Las Vegas
Unless the projected Q4 numbers improve dramatically, I would expect another LR. If we are unsuccessful in increasing revenue, a resource reduction is a quick and dirty way to reduce costs to improve profitability.
I would certainly hope that Cisco doesn't have to announce another LR at the year-end earnings call.
I'm hoping that they saw that they could "extend" the previous one by having it now instead of having another annual round of layoffs.
Let's hope it's a PR stunt to put a better spin on things by saying "See, we don't have annual LR's, we didn't have any announcements for FY18." and moving up the head count losses from FY18Q1 to FY17Q4.
But, given the laws of other countries, they can't move very fast there so I'm guessing that all of the just announced 1K will come out of the US if they want it to happen in FY17.