Feeds

Cisco dismisses 'hefty' layoffs rumor

Smells not quite right

Build a business case: developing custom apps

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." ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?