Feeds

Cisco dismisses 'hefty' layoffs rumor

Smells not quite right

High performance access to file storage

Cisco Systems has dismissed predictions of a 10 per cent reduction in headcount from a JPMorgan analyst.

Ehud Gelblum has gone out on a limb and said Cisco “could” announce the 10 per cent cut and “could” save the company about $900m (£600m) a year through the move according to report by the Silicon Alley Insider. The Insider cites TheStreet.com. Let the whispering games begin.

In response to The Reg's request for clarification, a Cisco's spokesperson told us: "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."

In other words, Cisco would prefer that you pay no attention to the whispers. Please.

And some of the Insider's own readers are skeptical. One commenter doubted TheStreet's creds, adding Gelblum's analysis didn't pass the "smell test".

"Why exactly would a tech company, which lives and dies by the creativity of its workforce, cut 10 per cent of its staff when it has that cash pile in the bank," TimboM posted on the Insider's site.

Indeed. While 1,500 to 2,000 may seem as "broad scale" to some observers, it's significantly less than the 10 per cent predicted by Gelblum - when the company's second fiscal quarter closed at the end of this January, Cisco had 67,318 employees worldwide.

Although all areas of the tech sector are being squeezed by the ongoing Meltdown, Cisco is in a better position than most. At the end of that same quarter, the networking giant and new entrant into the server market had $29.5bn (£19.8bn) in cash - enough to prompt it to see 2009 as a good year for aquisitions.

In fact, when discussing Cisco's acquisition plans, the company's senior vice president of corporate development Ned Hooper said: "The downturn for us is a big positive."

Hooper, apparently, doesn't see himself among the 1,500 to 2,000 employees who'll be receiving pink slips "in the near term." ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
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
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.