back to article Cisco prepares to take $700m hit to make 6,000 layoffs

Cisco has said that it will be hit with $700m in charges in fiscal 2015 in the restructuring plan that will see the firm axe 6,000 employees. The company said in a regulatory filing that it expects to recognise around $250m to $350m of these charges in the first quarter of the next financial year and the rest throughout the …

  1. JaitcH
    FAIL

    Payback time for lying to Congress and using Obama to lie about the competition?

    I don't really feel to sorry about these people, they worked for an American company that used American business rules.

    CISCO made a statement to Congress that was filled with lies, then they had Obama go around the world persuading gullible governments such as Australia, Canada and the UK that the competition was building back-doors in their products (unproven).

    How can ANY American manufacturer after what we all learned about NSA cooperation from Edward Snowden?

  2. Richard Taylor 2
    Facepalm

    It's where average deceive

    Approx 100k per employee - oh yes, a skewed curve if ever we saw one - and yes I know infrastructure closure will induce costs..... So all you 10k people - wot do you thin - or even the 1k people or even the .1k folks?

    1. ecofeco Silver badge

      Re: It's where average deceive

      500 people will get severance. The rest will get a lump of coal at best.

  3. Anonymous Coward
    Anonymous Coward

    American are you sure?

    Im pretty certain CISCO pays Irish tax or something, nothing to do with USA HONEST

  4. earphone
    Childcatcher

    Is this about the open boxes?

    Is this about the router boxes being opened during shipment and given undocumented features? Surely, not.

  5. Gil Grissum

    Instead of axing 6,000 people, why not axe some of the useless overpaid upper management? That would save them more money and leave the people alone who actually make the company all that money it waists paying useless upper management? Naturally, that will never happen, because upper management protects their own jobs by letting go of thousands. Microsoft. HP. Who else? It's the way big businesses work.

    1. asdf

      pretty much

      I mostly agree for the big boys but I remember their recently being an article on here about one corp getting smart and cleaning house mostly in middle management (forgot company). Still I have heard stories in mid sized companies about managers picking the people to layoff with the last person to be laid off being themselves (told at end of course).

    2. Gartal

      Cisco prepares to take $700m hit to make 6,000 layoffs

      Because chickens without heads tend to not function very well.

      1. asdf

        Re: Cisco prepares to take $700m hit to make 6,000 layoffs

        Yeah too bad too much or incompetent management tends to mirror too little only it costs a heckuva lot more.

    3. Alan Brown Silver badge

      "Instead of axing 6,000 people, why not axe some of the useless overpaid upper management? "

      Or (and here's an idea), why not get real about product prices.

      I recently spent £75k with Huawei(*) for switches which are significantly more powerful and flexible than Cisco were offering for 3-5 times that figure (more, once you realised that several features that we wanted were standard in the Huawei kit and "added value items" in the Ciscos)

      I've been extremely impressed with Huawei's tech support guys in Romania too.

      Commodity Silicon (mainly Broadcom's Trident and friends) is eating Cisco's high end market. Cisco are even using it in their Nexus switches, but still trying to pretend they develop their own asics and pricing accordingly.

      It's been said that Cisco looked at rejigging to deal with commodity silicon but it was nixed by the accountants on the basis that it'd turn a $40 billion business into a $25 billion one. They missed out that the cost of NOT rejigging might well be to turn it into a $0 billion business.

      The market is sick and tired of Cisco's "900 pound gorilla" pricing and support structures. There are a number of alternatives and their remaining business mainly comes down to the "nobody ever got fired for buying ..." crowd.

      (*) Huawei, HP, Brocade, Juniper, Arista and Avaya were all close in pricing. Cisco were notably more expensive AND had lower specs than the rest. It was clear they were trading on their name and their sales guys approached the deal like they already had the sale in the bag.

  6. John 104

    What the hell?

    @ JaitcH @ Richard Taylor 2

    What the hell is up with both of your writing skills? Your posts are like reading an AP article.

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