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How Deep Will Cisco Cut?

Here's a glance at the cable headlines as a new week gets underway...

  • Cisco Systems Inc. (Nasdaq: CSCO) could cut as many as 4,000 jobs, equal to almost 6 percent of its permanent workforce of 73,000, making it the biggest layoff in the company's history, analysts polled by Reuters speculated. Cisco isn't expected to reveal the extent of the layoff until sometime this summer. (See Cisco Preps for Layoffs.)

  • Comcast Corp. (Nasdaq: CMCSA, CMCSK) identified more than 20 markets that have launched Metro Ethernet services as the MSO starts to move up-market and pursue mid-sized businesses with 20 to 500 employees. (See When Will Comcast's Move Up-Market Pay Off?)

  • Netflix Inc. (Nasdaq: NFLX) will soon add titles such as Pulp Fiction and Kill Bill to its streaming vaults after notching a non-exclusive, multi-year deal with Miramax. It's believed that Netflix paid more than $100 million for the rights.

  • DirecTV Group Inc. (NYSE: DTV) will rebrand its 101 Network channel as the Audience Network next month and set its sights on creating a new premium offering that will feature original shows and challenge HBO, Showtime Networks Inc. and Starz Entertainment LLC .

  • Federal Communications Commission (FCC) Chairman Julius Genachowski said Meredith Attwell Baker followed the rules following her much-criticized decision to leave the agency and join Comcast almost four months after she voted in favor of the MSO's acquisition of NBCUniversal LLC . (See Attwell Baker Jumps From FCC to Comcast.)

  • Dish Network LLC (Nasdaq: DISH) may follow DirecTV with its own launch of Home Premiere, a controversial service that debuts movies 60 days after their theatrical releases for about $30 per title.

    — Jeff Baumgartner, Site Editor, Light Reading Cable, and Steve Donohue, Special to Light Reading Cable

  • horse of a different color 12/5/2012 | 5:05:14 PM
    re: How Deep Will Cisco Cut?

    I beg to differ regarding your numbers.  I was "offered the opportunity to excel elsewhere" in '99 when the company had about 40k employees, and the layoff numbers were around 8K.  So ulness you are using some kind of "new internet math", this wouldn't be a record...just sad.  The funny thing about Cisco is that these layoff numbers could be massaged in many ways, especially when you take into consideration their policy of "managing out the bottom 5%".  Perception is everything...so says the mktg dept.   ;-)

    Lone Ranger 12/5/2012 | 5:05:13 PM
    re: How Deep Will Cisco Cut?

    Dealing with Cisco as a customer, I can tell you they have a very long way to go to reconnect in a meaningful way with their customers.

    crazy4geek 12/5/2012 | 5:04:56 PM
    re: How Deep Will Cisco Cut?

    I appreciate the company taking it's time to make the cuts "right" as opposed to just hacking off 5% regardless if they're in an over performing group or not.  That said, I do wonder the impact of reduced moral within the company as well as customers who may be questioning future business until Cisco profile is shaken out.  I have tremendous faith in Cisco and am glad to see their ongoing communication.  I wonder what the buzz is out there with other customers?

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