Cisco had offered two early retirement plan before, any chance to do this again?
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What would one expect if they were 57, and has 16.9 years of service?
package will be up to $450k, depending on years of service
Looks like ER is happening. Now if I just knew the details on if for age plus service 60 or 70. I also wonder what the ER package looks like.
And now it's August 2020 and a new voluntary early retirement plan is unfolding...
"Restructuring, which includes a voluntary early retirement program and layoffs, will begin this quarter, the company said, adding that it expected to recognize a related charge of about $900 million."
My ex manager(director) got it in fall of 2016. He was a long term Cisco employee.
EERs are history. HR and management were caught off guard with the huge volume of requests to leave the company. It's cheaper and more efficient for management to weed out the high earners that bring little value to the bottom line. VP's, Directors, SVPs, Senior mangers and CEOs are excluded of course, this will never happen!
2009 and 2011. It was NOT 2014, because if it were, I would have been eligible and long gone. I was 10 months short in 2011.
They won't do this again because there is no control. Management demands control. Simply put, it is easier to overweight the 45+ target with LRs or company-at-will reductions every quarter. Which is what we are seeing.
2011 was the last time.
2014 was the last time, to my knowledge. I forget the job title my boss's boss had at the time, but he had just gotten promoted from whatever to Director within our BU. Less than 2 months later, they make the offer of early retirement and he took it.
From what I understood, he didn't make his bosses very happy and they made him delay his retirement by 90 days to make a more orderly transition to the next director. I understand there was a lot of political in-fighting between two of his three direct reports.
During the workforce reduction of '14, one guy I bumped into at the copier the day we were notified was extremely upset about being let go. He had 17 yrs with the company and it was his first job out of college. He was too young for the early retirement. His boss, however, had joined Cisco and his team less than 2 yrs earlier, but because his age (53+) and his years of service (2) added up to over 55, he was eligible for the early retirement and got twice the package he had gotten with 17+ years of service. Frankly, I don't blame him.
I don't think it was offered in the '15 or '16 LR's. I wasn't eligible in any case as I was 49 at the time of my layoff.
I think the reason they don't offer it any more is that no matter how many they let leave voluntarily, they can't avoid a workforce reduction and the stock seems to keep surviving the reductions so why spend the extra money to entice people to leave when they can just kick them to the curb.
Plus, they used to get rid of the bottom 5% which was smart and improved the company. Now they're getting rid of the "expensive" workers regardless of performance and the early retirement opened too many holes in upper management and not enough in the higher grade-but-not-managerial work force and they had to backfill too many managerial spots and ended up not saving as much money as projected.
2011 was the last time. Never again. They had no idea him many would take it and it caught HR by surprise.
No