Seriously, I don't understand how layoffs became such standard practice to bump quarterly results, when it was proven over and over that in the long run, it ends up costing the company. It's not just Cisco, everybody seems to be doing it, and the result is the same, and it keeps going on! Am I the insane one for not seeing the point to this?
http://knowledge.wharton.upenn.edu/article/how-layoffs-cost-companies/
Really good read on the issue, if you have time to go through the entire thing.
LRs are a method for leaders to get rid of the people that are a threat to them.
OP, the Wharton link is very good and should be considered alongside this link:
https://hbr.org/2002/12/the-consolidation-curve
"industries progress predictably through a clear consolidation life cycle—an industry will take on average 25 years to progress through all four stages of this cycle".
How old is Cisco?
and also this link:
https://hbr.org/2012/09/why-big-companies-cant-innovate
Layoffs happen everywhere these days. This guy had been the same job for 32 years!
https://m.youtube.com/watch?v=7hgkJMfZFzI
You realize that the people that control who is LRd have no idea who should really be LRd? They keep all their friends as a Cisco LR is a political exercise.
The layoff is coming in October 2017 just before the holidays. Please do yourself a favor plan for LAC. Life after Cisco. I was laid off May 18th. It was the coldest process, you are treated as a out cast, and pushed aside. This after 18 years with the company and just last year told I was a high performer employee. Prepare for LAC so you are in charge not Cisco. Build a 6 month stock pile of cash, payoff debt, stock pile your PTO balance, have your resume updated, get LinkedIn profile updated, build your network, contact recruiters. I received this advice last summer and glad I listened. I was laid off May 18th last day at Cisco was June 19th. I had two job offers and took two weeks off and started work in July. Best thing that happen. Again, there is LAC and it's awesome. Cisco is not the same company i loved once...it's a cold , uncaring, Wall Street focus , greedy, Rich get richer organization.
Average CEO tenure is 4 years, therefore they don't care what happens in the long run. Only care about quarterly stock and goosing the share price in the short term so they can collect an 8 figure yearly pay package. By the time the damage is done and the board replaces them, they walk away with $50-70m in the bank while the company and board are stuck picking up the pieces and a new CEO tries his / her 4 year plan. Wash. Rinse. Repeat.
The trick (beyond Cisco's ability) is to layoff the right people.
I feel we are so overstaffed in numerous useless internal operations that if the right 15% were LR'd, Cisco could continue on just fine without them.
Oh stop it! The ELT and your respective Grade-12 and above management team harbor less than zero fuks about layoffs and the working folk. It's a financial engineering game and they are deeply entrenched.
What the ELT hasn't figured out is that when you treat your employees like a commodity, unskilled, machine operator....you get what you pay for.
No loyalty, a revolving door and sh*t quality product.
ELT can feel ashamed? layoffs fatigue is not in their DNA.
I think the ELT is too ashamed to continue layoffs. Why else did they decide not to after a 7th quarter decline in revenue?