Cisco: Still No Layoffs
What might happen is a "limited restructuring" that's going to take 1,500 to 2,000 jobs, CEO John Chambers said on today's earnings call. The reason is simple: Cisco sees its sales worsening for at least another quarter. (See Cisco's Still Sinking.)
It sounds as if Cisco is going to try to save those jobs -- which I'm guessing consist of people working in older Cisco divisions who can't be placed in newer projects.
And Chambers said he's not planning any companywide layoff. Such a move would have to be at least 10 percent of the company (6,700 people) to make enough of a difference, he said.
To repeat, that's not what they're doing. "We are not going to consider a layoff [meaning the 6,700 kind of layoff] at this point in time," Chambers said.
Cisco seems to have done well shrinking its costs. It's on track to exceed its goal of cutting expenses at a rate that adds up to $1 billion per year. Those are expenses that won't come back, Chambers noted. They include travel costs, which he estimated are down to $350 million (per year, I assume) compared with $750 million earlier. And yes, that's largely because of TelePresence.
— Craig Matsumoto, West Coast Editor, Light Reading