Thread regarding Cisco Systems Inc. layoffs

1100 more layoffs announced in footnote

From the earnings release, footnote to the GAAP to non-GAAP business outlook at the end of the release. Sounds like an additional 1100 people getting the axe:

"(1) In August 2016, we announced a restructuring plan in order to reinvest in our key priority areas in which up to 5,500 employees would be impacted, with estimated pretax charges of approximately $700 million. In May 2017, we extended the restructuring plan to include an additional 1,100 employees with $150 million of estimated additional pretax charges. "

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Post ID: @OP+NkMAT7i

17 replies (most recent on top)

In Germany a grade 12/13 with 15 a 20 years of service the maximum package you can get is about 425K Euro (before TAX).

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Post ID: @1bdp+NkMAT7i

...not to mention in some jurisdictions that the severance payout may be quite substantial...

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Post ID: @1gye+NkMAT7i

Sincere question: Does the $150M "pretax charge" essentially mean it will cost Cisco $136,ooo for each person being fired? (150M/1100=136k)

Old people with many years experience who might see six months severance plus health care and unused vacation will eat well over half of that. Management, human resources, workplace resources, outplacement, unemployment insurance increases, the cost of retraining (or hiring and training) others to take up ongoing projects, building consolidation to site closure costs, etc... will add significantly to the total cost.

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Post ID: @1fim+NkMAT7i

Are those going to be blue badges only?!

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Post ID: @1nkm+NkMAT7i

Last year 14000 was initially announced which was corrected afterwards!!.. it seems for me the real number (influding next Aug LR) is 11000 which is around 15% of total Cisco employees... and this is inline with what is expected

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Post ID: @1gln+NkMAT7i

Less than I expected

I was LRed in 2015, wife still with Cisco

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Post ID: @1jpb+NkMAT7i

@euj - I agree Grade 11 and 12 were a sweet spot for all LRs we had.

I see that as something that will repeat this time again.

Also, I was expecting 3K to 4K to be cut, so at 1K, we are doing just fine now...

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Post ID: @diw+NkMAT7i

8K views, 2 hours. hahaha, where is Cisco PR now? You cannot hide anything nowadays.

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Post ID: @nil+NkMAT7i

Grade 11s & 12 are possible target as cost cutting for the quarter is a prime focus.

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Post ID: @euj+NkMAT7i

Sincere question: Does the $150M "pretax charge" essentially mean it will cost Cisco $136,ooo for each person being fired? (150M/1100=136k)

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Post ID: @vlo+NkMAT7i

Not as bad as anticipated soI guess the big one comes at the end of q4. Like always. My sympathies to the 1100 souls about to have their livelihoods taken from them in the next while.

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Post ID: @ipt+NkMAT7i

Well, it's clear - they have -1 or -2% guidance last Q, and now they are hitting 1-2% and now we are getting -4 to -6% guidance, so you can figure out what's going to happen in August. The planning will start tomorrow.

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Post ID: @swv+NkMAT7i

Seems like there is a typo out there, one says 11,000 and the other says 1,100...

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Post ID: @nji+NkMAT7i

What are you guys hearing on the ground right now?

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Post ID: @zei+NkMAT7i

Looks like they added an extra "0" at the end ... business decisions that will increase this number by approximately 11,000 roles.

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Post ID: @eys+NkMAT7i

309 views, posted 10 minutes ago - I guess everyone at Cisco is on this thread right now

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Post ID: @uof+NkMAT7i

@NkMAT7i - Good catch, excellent

So, there you have it...

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Post ID: @oaw+NkMAT7i

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