Cisco slashes thousands of staff, 7% of entire workforce, pivots into AI

Networking titan Cisco has confirmed in a filing with the Securities Exchange Commission (SEC) that it is eliminating 7 percent of its global workforce as it embarks upon a restructuring plan. Switchzilla currently employs almost 85,000 people – meaning around 6,000 employees are about to get bad news. "Cisco currently …

[Paul Crawford]

Chief financial officer Richard Herren claimed in the earnings call that the layoff was "not about cost saving."

Oh so did everyone get a 7% pay rise on the back of 7% redundancies? If not you are a bulshitter.

[teknopaul]

How ay the lads

After persuading the US and Europe not to let Huawei compete: Switchzilla can probably afford to sack 7% of their knowledge and trundle on with the helm manned by robots.

At least until 6G, or similar, makes them look behind the times again.

[Flightmode]

Oh great.

> Cisco is hoping to diversify and reposition itself for subscription revenue.

Just what we need in the infrastructure world - more subscription fees. /s

[wyatt]

Re: Oh great.

It is the way unfortunately. Business I work for tried a NRR model (none recurring revenue) but that didn't work and now they want ARR (annual). Makes the finances look better.

[Doctor Syntax]

"It has bolstered the software and securities operations via acquisition."

I wonder if manglement realise that the major part of the assets they're gaining like that are people and their knowledge. By the time they've hollowed out those companies staffs they'll be back to square one with innovation taking place elsewhere.

[Anna Nymous]

IBM would like you to know that is very proud of it's unique M&A process, thankyouverymuch.

[Anonymous Coward]

Eliminating 7 percent of its global workforce

Sounds a bit harsh.

[Korev]

Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of up to $1 billion

And then a load more money as it hires many of them back as contractors?

Good luck to all those affected

[ecofeco]

That's not how contracting works in the U.S.

"Contractors" in the U.S. are actually lower paid temp staff with no benefits, or paid days off of any kind. This includes workers with 10, 15 to 20 years experience.

[jpennycook]

But where's the blockchain?

It can't be a real pivot if there's no blockchain. I thought all modern companies were doing blockchain AND AI.

[Sorry that handle is already taken.]

Re: But where's the blockchain?

I think I see your confusion. Blockchain finally got found out so all the blockchain grifters pivoted to being AI grifters.

[barry_lemon]

Cisco layoffs? It's as annual as Christmas

Cisco layoff 5-7% of the "manager designated" poor performers every year, so why is this even news. There are some awful people at Cisco, they get away with everything. And yet the workers always carry the can. Terrible company. Won't be long before Splunk employees will be looking for jobs when they see the Cisco monster in the light.

[martinusher]

Re: Cisco layoffs? It's as annual as Christmas

This kind of personnel management ("ditch the bottom performers annually") was pioneered by GE. It managed the business into the ground.

What these corporate types don't realize is that it has two serious side effects. One is retains the staff that are best at ranking and rating and -- if my experience at Intel's anything to go by -- focuses the entire workforce on this one goal for at last one month out of every twelve. The other is that it tends to eliminate the company as a place to make a career at, certainly if you're an engineering type. It might be good for entry level or if there's a handy local hire to use as a stopgap but for career development, especially if you're talented, its a road to nowhere. Senior management won't notice this, partly because the crust between them and the workforce will tell them what they need to hear, not what they need to know, and they're likely to be too busy with M&A or offshoring to be interested in local workforces.

The end result is always the same......a slow circling of the drain that gradually picks up speed......

[IvyKing]

Re: Cisco layoffs? It's as annual as Christmas

Very few people in management understand why senior enlisted officers are important in any military organization. There' s a lot of institutional memory that gets lost with the likes of rank and yank.

[ecofeco]

AI? For switches and routers?

Yeah, yeah, I know CISCO makes more than switches and routers, but maybe they, like all the other numpties jumping on this vaproware train, need to focus on squashing their bugs first.

But then, trashing the planet is capitalism, so I won't hold my breath.

https://www.theguardian.com/commentisfree/2021/oct/06/offshoring-wealth-capitalism-pandora-papers