& cplSiteName &

Report: Cisco Cuts Could Hit 10,000

Ray Le Maistre
7/12/2011
50%
50%

It's set to be a long month for Cisco Systems Inc. (Nasdaq: CSCO) employees as speculation mounts about the severity of the company's impending job cuts, with Bloomberg reporting early Tuesday that up to 10,000 jobs -- about 14 percent of the company's workforce -- may leave the company as a result of enforced layoffs and voluntary early retirement.

The giant vendor will reveal the extent of its headcount reduction program as part of its Aug. 10 earnings announcement, but until then it's likely that various numbers will hit the news wires.

And the layoff projections are updating quickly -- on Monday the talk was of 5,000 job cuts, while in May the talk was of 4,000 departures. Some Cisco staff who opted for early retirement are believed to have already left the company. (See Cisco May Cut 5,000 Jobs and Cisco's Early Retirements Begin.)

Cisco announced in May, as part of its fiscal third-quarter earnings announcement, that its headcount would be reduced during 2011, noting that staff would be informed of the details by the end of the summer. (See Cisco Preps for Layoffs.)

That announcement followed an internal memo from CEO John Chambers announcing a major upheaval in the company that was designed to combat operational problems, a move that was followed swiftly by the closure of the company's Flip video camera business. (See Cisco Signals Major Restructuring and Cisco Flips on Consumer Business.)

Other recent Cisco developments include:

— Ray Le Maistre, International Managing Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Rush21120
50%
50%
Rush21120,
User Rank: Light Sabre
12/5/2012 | 4:59:36 PM
re: Report: Cisco Cuts Could Hit 10,000


Is it already a forgone conclusion most of these cuts will be US based?

inauniversefarfaraway
50%
50%
inauniversefarfaraway,
User Rank: Light Beer
12/5/2012 | 4:59:35 PM
re: Report: Cisco Cuts Could Hit 10,000


If Cisco is to continue it's downward spiral, then cuts would have to be in the US. Fire all the competent folks, they are usually the most unhappy. What will be left will be a happier company!


Pretty sad, instead of becoming the dog of the DOW, maybe JC should have gotten a seeing eye dog... Perhaps his dislexia has gotten the better of him, he thinks the company is actually improving when you read the chart sideways.


If the Nortel failure was any indication, no doubt they will trim the muscle and keep the fat. You can't sprain the fat, can't work it too hard.


The prevailing wisdom is that Cisco has become just like Nortel... Isn't that funny?


Remember the lesson from the Nortel days, make sure to jump on the first package, they only get worse after... ;-)

olegzz
50%
50%
olegzz,
User Rank: Light Beer
12/5/2012 | 4:59:31 PM
re: Report: Cisco Cuts Could Hit 10,000


The main problem inside Cisco is that there are too many managers (I would even say too-o-o-o-o many). In vertical, there could be up to seven layers of managers (who doesn't make money but definitely want to have personal assistant) for one engineer.


Managers usually don't care about business, manager cares how to become "senior manager", senior manager cares how to become director, director cares how to become vice-president and so on. There is nothing about technology leadership here.


Last 5-7 years a lot of casual people came to Cisco as managers. They could sphere the cheeks but current Cisco state clearly shows that this is not enough.


So it could be easily cut up to 1/7 of total number w/o business affect. Of course managers.


Because engineers are the treasure of company.

inauniversefarfaraway
50%
50%
inauniversefarfaraway,
User Rank: Light Beer
12/5/2012 | 4:59:29 PM
re: Report: Cisco Cuts Could Hit 10,000


Olegzz,


Courageous engineer, you have my best wishes for success!


Sadly, Cisco has eliminated the engineer in favor of the manager from its inception. The two Cisco founders were rejected from their own creation and this has not stopped. Cisco is a religious believer that organization and management are the keys to success, not brillant engineering. They believe they can manage in spite of engineering.


They will most likely follow in the steps of Nortel, a company that took out full page advertisements to praise their employees publicly, but savaged them privately. The proof of this is now history, we only need mention the pension plan.


Cisco will become yet another victim of human nature. We are social animals and as such will rely on our ability to socialize over and above our ability to innovate. The cliques within each division of the company have cemented the confidence of their superiors and this ensures they will remain and the engineers will go. These relationships are now more important than the company, the business and most especially the engineer.


A very similar phenomenon can be observed in Washington. Cliques (parties) rules over the interests of the organization (or country). The only advantage in Washington is that "the people" get to clean house every few years.


Make no mistake, Cisco is doomed... The reason is that the only way forward for companies this big is to become conglomerates. If they fail at this, then they are a one trick pony. Their culture can only do one thing. This is usually fatal because it only takes a few small changes to upset the applecart. Time will tell.

rakes
50%
50%
rakes,
User Rank: Light Beer
12/5/2012 | 4:59:17 PM
re: Report: Cisco Cuts Could Hit 10,000


From knowing past colleagues at Nortel, many of them ended up at Cisco over the last several years. In my opinion, Cisco went from a company that had high standards to one that would hire just about anyone. Somewhere along the way, they seem to have lost control of their vetting process. The same applies at Juniper but to a lesser degree.

inauniversefarfaraway
50%
50%
inauniversefarfaraway,
User Rank: Light Beer
12/5/2012 | 4:59:09 PM
re: Report: Cisco Cuts Could Hit 10,000


Hello rakes,


Looking at these same events from a slightly different viewpoint. You will recall that the response from Nortel at the exodus of qualified staff was precisely to hire just about everybody and their relatives. This immediately preceeded the great fall.


Could it be that Cisco is exhibiting the same behavior in hiring indiscriminantly?


The back room boys thought that moving CSCO to the DOW was the only way to pump more money into the pig, yet institutions were sure to steer clear of the zombie.


Now they plan to grow by shrinking, good luck with that.


The cuts are probably intended to pay for the big acquisitions ahead... Bet you one of the "big" acquisitions is Cortina, an IPO failure by any standard, but required to pay off the oinker VCs and their drinking buddies.

Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Shades of Ray
Why Analytics Is the Tech World's Digital Glue

3|27|17   |   02:20   |   (0) comments


It was obvious at the massive annual CeBIT enterprise tech trade show that the foundation for tech innovation right now is real-time analytics.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
Russia's MTS: There Is No 5G Business Case
Iain Morris, News Editor, 3/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.