Feeds

Cisco lays off 250 in first wave of cuts

But don't call them layoffs

Top three mobile application threats

Cisco has begun the layoff process it had announced earlier, with approximately 250 people exiting its San Jose, California headquarters this week, along with more throughout its worldwide operations.

The total number of lost jobs isn't clear, according to a report in the Wall Street Journal, but they won't be the only ones the networking leader will shed.

During the company's February 4 financial conference with reporters and analysts, Chairman and CEO John Chambers estimated that the final head-count in this round of layoffs would be between 1,500 and 2,000.

According to Chambers, however, the company's shedding of employees is not a layoff, but instead a "realignment and restructuring of resources to new opportunities."

In a Q&A published in conjunction with the financial report. Chambers responded to a question about layoffs by saying: "Being very transparent, our definition of a company-wide layoff, if we had to do one, probably would be to lay off at least 10 per cent of our workforce. In very direct terms, we are not going to consider a layoff at this point in time."

And so the 1,500 to 2,000 "Cisco family members" - as Chambers called the company's employees in the Q&A - whose jobs will be eliminated won't be laid off. They'll be realigned and restructured.

Cisco has experienced some tough financial times in recent months. Its second-quarter revenue was down down 7.5 per cent from the same period last year. Its net income was down a full 27 percent.

But while those numbers may seem dark, Cisco is still a relatively healthy giant. Before this round of realignment and restructuring, its worldwide workforce numbered 67,000 and on February 4 it reported cash and cash equivalents of $29.5bn (£20.6bn).

However, Chambers believes that the situation will get worse before it gets better, saying that he expects sales to dip as much as 20 per cent in the next quarter.

But that $29.5bn provides one hell of a cushion.

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.