Cisco Systems Inc. laid off several hundred employees on Thursday, as the company tries to control its costs amid declining sales.
Between 600 and 700 people were laid off at the company’s San Jose headquarters, according to a person familiar with the decision.
Source: WSJ
Cisco Systems Inc is in the process of cutting between 1,500 and 2,000 jobs, according to an report from Thomas Weisel analyst Hasan Imam.
A Cisco representative was not immediately available to comment on the report, which also said that the company could exceed its plan to cut annual costs by $1 billion with job cuts.
Source: Reuters
Cisco Systems Inc CEO John Chambers said on Monday that he would stay in his role for at least another 3-5 years, reassuring investors there would be no imminent change in leadership amid a global economic slowdown.
[..]
“I love what I do. I’m going to retire here at Cisco and after that I will teach,” he said. “I intend to stay at Cisco for probably a minimum of three to five more years, assuming I can earn the shareholders’ trust, our employees’ trust, our customers’ trust, and assuming my health holds up.”
Source: Reuters
Cisco Systems, Ins, Location: San Jose, CA, Layoff date: 4/17/09 Employees affected: 22
Cisco Systems, Ins, Location: San Jose, CA, Layoff date: 4/24/09 Employees affected: 233
Source: California EDD WARN (PDF document), SFGate
With sales still in steep decline and no sign of recovery on the horizon, Cisco is expected to make a massive staff cut.
Analysts expect Cisco to guide fiscal fourth quarter revenue down 17%-22% year-over-year, as demand continues to deteriorate.
Cisco could also announce a 10% headcount reduction, which could save $900M annually, according to JPMorgan analysts.
Source: Yahoo Finance, TheStreet.com
Update 1 (04-14-2009): Cisco dismisses ‘hefty’ layoffs rumor. According to a Cisco spokesperson: “On our fiscal second quarter 2009 earnings call in February we discussed a limited restructuring where we could in the near term see a total reduction of between 1,500 and 2,000 jobs company wide. This does not represent a broad-scale layoff in our workforce”.
Source: The Register
Update 2 (04-16-2009): According to WARN listing, Cisco Systems cuts 255 jobs in San Jose, California in April 2009
Update 3 (04-30-2009): According to rumors, Cisco “will delay the 10% layoff planned in May. But we will get 1 week shutdown in August”.
~ LayOffBlog.com: Please feel free to add comments and/or send us your updates regarding Cisco layoffs. ~
Satyam Computer Services Ltd., the software exporter at the center of India’s biggest fraud inquiry, fell the most in six weeks in New York after Tech Mahindra Ltd. won the bidding for control of the company.
Tech Mahindra will get control of about 50,000 employees servicing customers including Cisco Systems Inc. and Nestle SA.
“It’s one of the worst outcomes. Tech Mahindra is not a very well-known name.”, according to a source familiar with the matter.
Source: Bloomberg
Cisco Systems expects $47 billion of the federal stimulus money will be spent on technology.
Cisco’s fair share? About $1 billion, said Cisco’s senior vice president Bruce Klein during a visit to the company’s Research Triangle Park site Friday. Klein, based in Virginia, is responsible for making sure Cisco gets that share of the money.
Businesses like Cisco can’t receive the federal money directly, but only through projects financed by stimulus funds that are paid to local and state agencies. Toward that end, Klein put together nine teams across the company to pore over government documents and identify business opportunities with local governments, school districts, state agencies, university systems and health care organizations.
Source: News & Observer. Thanks anon for the tip.
According to Channel Web: “Cisco Systems (NSDQ:CSCO) confirmed to Channelweb.com that it has eliminated a number of positions in the U.S. and abroad as part of its realignment and restructuring initiative that will chop $1 billion out of its operating budget throughout fiscal year 2009.
Cisco would not confirm on Wednesday how many positions were cut. Sources, however, said employees started receiving notifications on Tuesday, and roughly 250 of the positions eliminated were based in San Jose, Calif. Overall, sources said, the number of employees affected was fewer than the 1,500 to 2,000 that Cisco CEO John Chambers hinted at on the company’s earnings call for the second fiscal quarter.”
According to CNNMoney: “The global economic downturn will continue to hammer computer networking giant Cisco Systems Inc., chief executive John Chambers said Wednesday.
In its current quarter, Cisco expects to see revenue decline between 15% and 20%, he said in a conference call with analysts.”
“We are not going to consider (layoffs) at this time,” chief executive John Chambers said. But he added, that if Cisco was forced to cut jobs, it would likely be a large cut of about 10% of its workforce.
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