Cisco Reports Fourth-Quarter 2016 Earnings (cnbc.com) 30
Cisco has reported its fiscal fourth-quarter earnings and they have exceeded analysts' expectations. CRN reported yesterday that the company will be laying off about 14,000 employees, representing nearly 20 percent of the company's global workforce, according to multiple sources close to the company. Instead, the company will be cutting only 5,500 positions, representing roughly 7 percent of its global workforce, beginning in the fiscal first quarter of 2017. CNBC reports: "The company reported fiscal fourth-quarter earnings of 63 cents a share on revenues of $12.64 billion, beating analyst expectations for 60 cents per share on revenues of $12.57 billion, according to a Thomson Reuters consensus estimate. The company said that 'today's market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we've seen in our history.' Cisco said it expects to reinvest the cost savings from its restructuring plan into 'key priority areas such as security, IoT, collaboration, next generation data center and cloud.'"
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meh~ lets see who exercises their golden parachutepants next 2 quarters.
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Funny how they beat the street but still feel the need to start chopping heads.
If you pay attention, you'll see that they have done this nearly every year. It's an exercise to get of the 10-15% lowest performers.
In large companies like Cisco, with large groups, it is easy for the lazy and underperforming to "hide". Most large teams I worked in, 20% of the folks were doing 80% of the work. Why? Because in large teams, HR will insist to hire underqualified and new-grad employees who are basically useless, and sit around all day attending meetings while feeling important.
Interestingl
Huh?! (Score:4, Insightful)
Bad New: We're still laying off people because the CEO needs a raise to buy another yacht.
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Either they are running out of new customers to sell their overpriced products to, or the products are lasting so long, they are not being replaced as fast anymore.
Or the boss needs a new private jet... this time painted blue.
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Or the boss needs a new private jet... this time painted blue.
When I got laid off from Cisco in 2013, the CEO got a 60% raise despite a lousy fiscal year. Rumor had it that he needed a new yacht to keep up with the other CEOs.
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He who has the most toys...
Still dies with none.
But that does not stop people from screwing over their fellow man to get more toys, sadly.
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And yet, every job hunting site on the planet has various Cisco jobs posted.
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Perhaps at half the pay of the people being kicked out the door?
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Hey you need to send me $50 and I'll buy you a coffee.
No that's not optional. You made more money than I did and therefore I'm entitled to be paid money for work I do for you whether you need me to do that work for you or not.
Sounds kind of stupid doesn't it? Making money does not mean you should be obligated in any way to pay dead weight.
No good deed goes unpunished (Score:4)
CISCO: "Hail fellow workers! Your hard work has brought in more money than expected! You shall be rewarded handsomely. The 93% of you still employed tomorrow will still get a paycheck. Please check your email to see who you are."
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So you know the specifics of how workers helped CISCO earn money? It sounds like CISCO could have had earnings even higher if they didn't need to pay for a number of staff who clearly serve no purpose.
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And just think how much more their earnings could have been if they'd taken all those "no-purpose" employees and found a profitable purpose for them.
Cisco is not very good at that. They bought TGV for its windows TCP stack, then sat on the product for years until it was worthless. They turned the engineers on that project into Cable Modem engineers, eventually. Of course, there was substantial attrition all along the way. The truth is that Cisco has made many strategic purchases and wound up with a lot of staff that they don't know what to do with, and then just wound up laying them all off.
Slightly innacurate statement (Score:1)
What a horribly inaccurate and misleading statemented. It'll actually be the 80% of staff still employed tomorrow... not 93%.
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Corporations are groups with one sole charter: make money to appease the stockholders.
I think you really need to get educated on what corporate charters are, who issues them, and what they mean. A corporate charter is simply a mandate granted by the people to operate as a unit, with certain privileges and responsibilities that the individuals who incorporate don't have. The world is full of non-profit corporations as well as profit-making corporations who choose to temper their greed with other considerations. There's no law that demands that in exchange for the "Inc." you have to be a preda
Why not link to the actual press release? (Score:1)
Fix the summary.
Layoffs of 14k was purely speculation by CRN, Cisco announced 5500 people:
https://newsroom.cisco.com/press-release-content?type=webcontent&articleId=1784571 [cisco.com]
The restructuring will eliminate up to 5,500 positions, representing approximately 7 percent of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017.
Fourth-Quarter 2016 Earnings ? (Score:1)
I am super impressed that they can report their Fourth-Quarter 2016 Earnings while still only in the Third Quarter of 2016
Perhaps their accountants have some sort of time machine?
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Fiscal Year !== Roman Year