Rumor: Cisco Systems to lay off IT contractors
According to rumors from insider sources*, Cisco Systems to cancel several internal projects (including Web 2.0 and R&D projects), laying off IT contractors, most of them are H1B visa workers. Cisco IT contractors are not actual Cisco employees, they are working through ‘vendor’ companies (also known as ‘body shops’). But the layoffs are real. Most likely these layoffs will not be listed in the Company layoff statistics.
Update (02-04-2009): Cisco Systems: Possible large (up to 10 percent) jobs cut in 2009
Update (02-24-2009): Rumor: “1800 More just got laid off at Cisco”, Austin, TX
Update (02-25-2009): Cisco Confirms Global Job Cuts
Update (03-12-2009): Cisco quietly downsizing through outsourcing
*WARNING: We cannot guarantee the accuracy of information as it is only an individuals point of view. We will investigate and/or omit any complaints of inaccuracy.
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Yes, actually for the stock holder it is good. Unless you have been restructured.
Cut head count, reduce OpEx, boost stock holders’ value.
Its illegal to get folks on L-1 and locate them on a client’s site. This abuse has been going on for too long. Cisco Managers (Indian/Chinese and others) strike deals with these companies for a cut. Just cut these guys loose. I have no problems with contract employees on h1-b making fare wage. Its frustrating to see all these outsourcing companies turn into body shops, abuse the immigrantion laws and distribute bonuses to their ceo’s. If Infosys wants to place locally, let them search the labor market and pay fair wage.
#296 who are the authorities I need to inform about L1 abuse.
Today Cisco EDW operations team has announced, that Cisco is hiring 13-15 Satyam L1 contractors
Cisco will sponsor visa for those new hire and retain on their payroll
most of these new hire have less than 5 years of experience,
Cisco can easily find many highly skilled( in terms of experience, knowledge etc.) American citizens/Green Card holders in market today.
IT manager - Hilda Salazar is hiring them without interviewing US citizens and GC holders
#296 who are the authorities I need to inform about L1 abuse.
Today Cisco EDW operations team has announced, that Cisco is hiring 13-15 Satyam L1 contractors
Cisco will sponsor visa for those new hire and retain on their payroll
most of these new hire have less than 5 years of experience,
Cisco can easily find many highly skilled( in terms of experience, knowledge etc.) American citizens/Green Card holders in market today.
IT manager - Hilda Salazar is hiring them without interviewing US citizens and GC holders
John Chambers’ pronouncement that “Cisco will do a one time massive layoff if the downturn persists” would seem to be a bunch of baloney. They are dribbling people out the door in small bunches. I am told that the offices most affected in the recent dribbling included Massachusetts, Texas and Israel. Contractors and FT employees are apparently being whacked in ones and twos everywhere … some mgrs were told to get rid of around 1 out of every 15 employees selected by performance ranking.
I know they have to do this and I’m not criticizing what is happening, except to point out that Chambers has lost credibility by following the same gameplan as the last downturn after explicitly saying that he would make the cuts “deep and clean”. I suspect that he honestly intended to do it differently, but probably it’s harder than he thought to make the tough decisions to eliminate entire products and close down offices. The default mode is to let the beancounters decide for you, and out of ignorance of the product line and market prospects they will come up with a dribbling plan to make many small cuts repeatedly according to short-term conditions. The cost of this indecision and stumbling along is that morale suffers a lot more than if the cut had been one-time, deep and clean.
Whatever is going on, it will all settle down. By the way I’m looking to buy a car from another cisco employee who is going back to India. See my post on cisco.nosle.com
#297 you are right, Cisco EDW team is converting only satyam employees(most of them are in L1 visa and rest are in H1b visa) to FTE, EDW team is NOT converting other US Citizen and GC holder contractors to FTE.
I bet those satyam contractors don’t know many things but the manager likes them
It is a rumour that CISCO is planning to layoff 750 people in India. This is very shocking considering the low cost factor in India. The severance package I heard is complete 7 months salary.
Severance package offered by other companies in India is similar.
Cadence - 6 month salary
Motorola - 6-24 months salary
Texas Instruments - 0 Yes it is zero. This company only has rosy picture, it has worst policy. They are doing back door layoff in India.
The San Jose Mercury News paper business section run a story about the chief tehnology officer of Cisco Systems. If one reads the piece closely one can discern the business plans and objectives of Chambers and his company (By keeping wages and head count low Cisco can add value to profits and it’s stock). By keeping wages low Cisco changes the whole dynamics of wages for the market to the disadvantage of the many for real advantage of the few.
Due to down ward sprial of wages and prices due to job loss and credit, this is not the time Cisco and like employers will cry out for change in the foreign worker laws. No law maker in DC will even talk about it in public. Note it’s not even on the GOP/Obama agenda. If Cisco cried today for foreign worker laws and demanded more foreign workers in public I bet Chambers would be unemployed.
Consider, that due to changes in technoloy, trade and labor many jobs lost in the sweet old USA are gone for good. Only a few major banks remain that means workers fired from the likes of Washington Mutual are gone baby gone for good. Cisco will limp alone with a lower head count thanks to part time workers, temps and contract workers and of course out sourcing. It’s going to cut benefits for fulltime labor.
Being short of money, central governments will continue to shift responsibility for social programs to local government, without regard to the availability of funds. The US government will reduce grants to the states, without at the same time reducing the states’ responsibilities for health and welfare. The states in turn will have revenue shortages, and shift the responsibilities to the counties, cities and local communities. The local communities will be stuck with the burdens but they won’t have the funds or the taxing authority to handle the problems. This shift is just one implication of the growing shortage of government revenues accompanying fundamental changes in the political economy. Resources are being placed out of reach and government is playing a shell game. In the near term, probably nobody will pick up the slack. That means reduced funding for education, for health insurance or for programs like Medicaid and Medicare. More people in the United States will fall outside the scope of these programs and there will be a higher proportion of people without educational opportunities, without medical insurance, and without pension plans. As in earlier periods of history, people will turn to private enterprise to ensure their welfare and security, and the authority of government will diminish in helping those with job loss, health care (the deal being worked out for health care is still a market driven system), education, old age care, and disability.
People believe or not we are on our own - the system is broke, the state is broke and there will be no change but YOU
Seems contractors are being cut across even important IT projects for the next quarter with budgets and headcounts slashed. This has been done purely for the reason of meeting their plans to slash expenditure and doesn’t account for the loss to the business with many promised projects taking longer or being scrapped. Very disappointed to see Cisco putting shareholders before it’s own staff. I guess this is an example of the very same corporate greed which has caused the credit crunch.
Expect big losses in contractors before the next quarter as there is little to no funding for them after that. Late March will be ‘interesting’
Please stop publishing this kind of rumor.
Cisco quietly downsizing through outsourcing
http://www.networkworld.com/news/2009/031209-cisco-downsizing-outsourcing.html?netht=ts_031209&nladname=031209dailynewspmal
http://www.networkworld.com/news/2009/031209-cisco-downsizing-outsourcing.html
Chambers should be sent to prison for treason.
Jack Ridley, soon cisco will be in the list of 3com, nortel, motorola. then chamber will realize his mistake
Already chamber had personal dealing with ex satyam owner ramalinga raju. same with other indian outsourcing companies
http://www.networkworld.com/news/2009/031209-cisco-downsizing-outsourcing.html
>> Chambers should be sent to prison for treason.
305, this is really sad… chambers call cisco a family.. but he is the first to cut the supply line on his own family…. cisco is a disgrace company… cisco, go back to india and operate from there…
i really hope that american and european “cisco” consumers boycott cisco.. no wonder cisco is losing the edge in the routing market.
According to http://www.edd.ca.gov/Jobs_and_Training/warn/eddwarnlwia09.pdf,
Cisco Systems is planning layoff of 22 people on 4/17/09 and 233 people on 4/24/09 in SJ headquarter.
Anyone has information on which BU will be affect? And if these people already received their pink slip?
When Cisco opened the new Development Center in Bangalore, India, J. Chambers stated his goal was to have 20% of the Cisco workforce based there. The requisitions for this headcount in Bangalore is not coming from the creation of new jobs but through the firing of US workers in order to ship their jobs to India.
yes, those who work hard get the fruits of their labor….until their jobs get outsourced to India. Cisco has been outsourcing for quite a while now. Length of time the employees worked for Cisco is of no interest to Cisco. They couldn’t care less how hard you worked for them or for how long you worked for them
He should be shot!
With all the forced ranking (groups are forced to pick out the bottom 5% and 10% of their group, regardless of whether they are doing a good job or not, and consequently these unfortunate 5% - 10% are ineligible for salary increases and bonuses - bonuses make up a substantial part of Cisco worker’s compensations. These unlucky people are also not allowed to transfer to other jobs within Cisco while they are in the bottom 5% - 10%), the “limited restructuring” (i.e. layoffs and outsourcing), general salary freezes since 2001 and starting last year, the stopping of stock option grants to the general population (i.e. anybody below the rank of manager) - I think Cisco may start seeing some voluntary turnover when the economy improves.
My entire group is being outsourced to India. Most of the people in the group have been in the same job for close to 10 years, with no complaints about their work or the products they develop. We were told the reason we were being outsourced to India was to save money. That is the reason in its entirety as to why Cisco/Chambers is so eager to outsource to India.
I really think you don’t know what your talking about.
What Cisco has NOT done is to be honest about the amount of outsourcing of US jobs to India and China that has/is taking place. They have been very secretive about the whole thing. When asked about outsourcing by various media representatives, Cisco falls back on the line that restructuring around Cisco’s five priorities is continually taking place and refuse to give any more details about outsourcing.
Some forms of income in India are tax-exempt, subject to the conditions specified in Indian law, as follows:
A standard exemption of INR 100,000 on the income of an Indian resident.
Income from a tax - exempt dividend held by the recipient but the company is liable for a dividend distribution tax.
Compensation from an insurance company.
Severance pay in accordance with the provisions of Indian law.
A pension from work.
That part of income from a salary that is for rent, vacation, recreation, education of children and more, subject to the specified ceilings.
A capital gain from transfer of a residential property that has been held for a long term when the proceeds are invested in the purchase of another residential property.
Capital gain from the sale of listed shares held for a long term.
Hey People in India were also laid off this month.
Please check the details before you speak.
The rumour is right. though the number is less. Around 25 people were laid off from CISCO india this month. The 750 number is of worldwide reduction.
I think you’re missing the point. What I stated IS fact. Were the Indian people that were laid off outsourced by people in the US? Did I state in my post that NO people in India were laid off? Can you tell me which details I need to check in my previous post that you have detected as being false?
I doubt it, but we can only hope. :^)
And yet he thinks he’s a fucking hero because he’s paying for his own private jet.
ALL the Cisco people in India should be laid off and the jobs sent back here.
I think the way it works is that it is a Cisco corporate jet and Chambers pays the difference between whatever the cost of a flight is on the corporate jet versus the going rate for a chartered flight from somebody else, but then why would a flight on a jet operated by your own company be any more expensive than a flight on a chartered airline?
John Chambers is too smug to admit a mistake. He is going to save the world! Cisco has invested too much money in their India initiative and will never admit that it was a poor decision.
Actually, no, it’s his personal airplane. He owns it.
http://www.networkworld.com/community/node/39020
chamber new treat cisco employees as his family members, he rather treats them as slaves.
i have seen many of his company meetings he forces employees to agree his decision (else you know he is not going to get future benefits)
most of his body language is like a gay
chamber new treat cisco employees as his family members, he rather treats them as slaves.
i have seen many of his company meetings he forces employees to agree his decision (else you know he is not going to get future benefits)
most of his body language is like a gay
this is my friend’s interpretation
How much did cisco received as bailout?
Will cisco get govt. contract for setting up infrastructure? what is the $$ value?
is cisco CTO got selected under President Obama’s technical advisor board?
Jack,
If wishes were horses, then beggars would ride.
Your understanding of macroeconomics is very poor. You want people across the world to buy Cisco equipment, nortel equipment, nike shoes, levi’s jeans etc. But you don’t want local people in countries around the world to be building those products or stitching those clothes. Then the revenues from those sales are anyways coming back to San Jose or New Jersey. So why not keep the money also in India or China from the revenues are made. The world is under a major demographic shift, if you haven’t woken up to realise that. The growth is going to come from the 1B consumers in Asia, which continues to grow. The consumer market in US today is big but its shifting as we speak. Cisco/Nokia/Siemens/IBM/HP/Microsoft/Intel/Nike/Walmart/IKEA are all looking at their major markets and where their growth is coming from, and investing there, rightly so. Thats what macro economics is all about. They are also killing small entrepreneurs, local businesses etc. There is good and bad about globalisation, depends on which side you are today.
You really don’t understand how the economy works, do you?
No bailout. Cisco has plenty of cash (~$30billion) and is healthy.
This seems to be related to the ones announced in Feb-end.
Maybe you can start the trend by leaving Cisco.
No one got a bonus this year so far - leave alone the bottom 10%.
If you’re in the bottom 10%, that means there are 55000 employees better than you. Why would they want to retain a poor performer?
And you think you’re a fucking hero by posting this? Whoever you are Jack Ridley, you need to check facts. Your comments in this topic have been slanderous. It is your kind of attitude that makes people like you get fired. No one likes to work with you and no one likes you. Period.
Who are you Kumar? Don’t you know that Chambers is a name, and using the singular form (Chamber) is just ridiculous? I don’t know what you have against Chambers, or Cisco. Were you laid off? Maybe you need to learn how to communicate.
Khaja … Kumar … decide your name. They say that only gay people recognize gay body language. Tell you friend to go f*ck up a flag pole.
Yes, and all Indians/Chinese should leave the US and let the economy rot.
Wow! A network world article. They’re a bunch of anti-Cisco retards.
$0 bailout.
Welcome to the Inhuman Network.
Why do you think it was not a poor decision?