Questions I have from an Investor's Viewpoint.
So what IS the Salary structure of Management that you want to cut to make up for 4k employees?
Certainly it is bloated as virtually all US companies are, but what are the numbers that they have to make up? Hopefully they aren't pulling a "Circuit City" and unloading their highest paid (read that "most successful" salespeople).
As I understand it, Cisco is so proprietary that once you switch to Cisco, it becomes horribly expensive to switch away as you have to replace most of your equipment. If that is still true, they could sell the gear at a lower margin than the cheap systems, knowing that a company is locked in forever.
I can believe that they could unload jobs that are being automated into obsolescence such as the jobs they dropped on Foxconn, but I guess that if they are selling less Routers, they probably need less installers. My understanding is that for the Premium Price, you get more reliable systems than you get from "Low Bidder" distributors.
I also have to wonder how many of those 4k jobs are going to be replaced with "Temps" that Cisco doesn't have to give benefits. That is certainly a huge trend in recent years.