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Cisco Reports Fourth-Quarter 2016 Earnings (cnbc.com)
Cisco has reported its fiscal fourth-quarter earnings and they have exceeded analysts' expectations. CRN reported yesterday that the company will be laying off about 14,000 employees, representing nearly 20 percent of the company's global workforce, according to multiple sources close to the company. Instead, the company will be cutting only 5,500 positions, representing roughly 7 percent of its global workforce, beginning in the fiscal first quarter of 2017. CNBC reports: "The company reported fiscal fourth-quarter earnings of 63 cents a share on revenues of $12.64 billion, beating analyst expectations for 60 cents per share on revenues of $12.57 billion, according to a Thomson Reuters consensus estimate. The company said that 'today's market requires Cisco and our customers to be decisive, move with greater speed and drive more innovation than we've seen in our history.' Cisco said it expects to reinvest the cost savings from its restructuring plan into 'key priority areas such as security, IoT, collaboration, next generation data center and cloud.'"
That means they outsourced or H-1B'd 8500 jobs! Well done!
Funny how they beat the street but still feel the need to start chopping heads. Gotta love those MBA's in charge not seeing past next quarter.
Good News: We beat Wall Street expectations!
Bad New: We're still laying off people because the CEO needs a raise to buy another yacht.
CISCO: "Hail fellow workers! Your hard work has brought in more money than expected! You shall be rewarded handsomely. The 93% of you still employed tomorrow will still get a paycheck. Please check your email to see who you are."
Fuck Cisco and every other US-based company shipping American jobs overseas. We need meaningful legislation to protect American jobs and put our own citizens first.
Fix the summary.
Layoffs of 14k was purely speculation by CRN, Cisco announced 5500 people:
https://newsroom.cisco.com/press-release-content?type=webcontent&articleId=1784571
The restructuring will eliminate up to 5,500 positions, representing approximately 7 percent of our global workforce, and we will take action under this plan beginning in the first quarter of fiscal 2017.
I am super impressed that they can report their Fourth-Quarter 2016 Earnings while still only in the Third Quarter of 2016
Perhaps their accountants have some sort of time machine?
Fuck Cisco and every other US-based company shipping American jobs overseas. We need meaningful legislation to protect American jobs and put our own citizens first.
What makes you say that?
Corporations are groups with one sole charter: make money to appease the stockholders. Any corporation is going to do whatever maximizes profits, and no legislation is going to do a great job at curtailing that. We need to focus on education for jobs that aren't so easily reproduced overseas, not in filling holes in a breaking dam (e.g. let factory work go, focus on robotics and automation instead). My group at Cisco just cut an overseas team and rebuilt it in the US. The new US team will automate most of what the overseas team did.
Layoffs are merely a way of herding business priorities. They're a natural consequence of a corporate/capitalist society lacking checks and balances. Let go of the worst performers on teams in non-growth areas in order to shift resources to promising (and cheaper) new hires for teams in growth areas. As noted by CNBC (and even cited by the Slashdot article summary), "Cisco said it expects to reinvest the cost savings from its restructuring plan into 'key priority areas such as security, IoT, collaboration, next generation data center and cloud.'"
over bought, gonna crash , going short big time .... .... oh, sorry, .... forgot I wasn't on thestreet.com for a second there ...
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this move sniffs like a 'oh s&^%, we're gonna miss our number, so let's show the street we can be ruthless, it's all about the shareholder.' If it was, their 5 year return would be more like NASDAQ or DOW , which have done really nicely in the past 5 years ... and CSCO has languished ...
We need this type of stuff on Tech News for Nerds.
Why not just umm stockcharts.com?
sure, they're not laying off as many NOW, because they may need to juice their numbers in the future - hard to do that when the corpse dries out
Corporations are groups with one sole charter: make money to appease the stockholders.
I think you really need to get educated on what corporate charters are, who issues them, and what they mean. A corporate charter is simply a mandate granted by the people to operate as a unit, with certain privileges and responsibilities that the individuals who incorporate don't have. The world is full of non-profit corporations as well as profit-making corporations who choose to temper their greed with other considerations. There's no law that demands that in exchange for the "Inc." you have to be a predatory rapist with no regard for humanity/
In any event, is this "making money to appease the stockholders" or is it liquidating assets to pocket a quick short-term savings before the reduced production capabilities kick in? Selling the future so someone can grab the cash and run in the present?
I made my money - quite a lot of it - from being a long-term Cisco stockholder. When they stopped being a good long-term investment, I sold my shares and put the money to more constructive use.
I have as much faith in "education" as I do in supply-side economics. Every day we find a new way to offshore or outright automate a once-secure profession. In fact, I'm just waiting for the day that the competitive companies are the ones that lay off all those overpriced executives and replace them with AI's. There are strong indications that a system like IBM's Watson may already be better at executive decision-making than meatbags are. AI's don't have to salve their egos with expensive toys or power games, so they're not going to be tempted to jerk corporate assets around for their own short-term benefit.
Something needs to change. We cannot "downsize our way to greatness" forever. If we lay everyone off, who buys our products? Few people have any hope that re-education is anything more than a hamster wheel with a motor spinning it increasingly faster.
Laying people off is a waste of resources. Unlike new hires, these are known quantities, have already learned the corporate ecocosm, and would be more motivate to work for the corporate benefit than a whole new group of people brought in knowing that they, too, are only there to be used and discarded. Why should recycling be a principle only applied to materials? Why aren't there any executives far-seeing enough to find new ways to exploit existing assets and to invest resources in molding them to new and profitable ends? We spend years on exploding executive compensation by rationalizing that these people were like Gods in their extra-ordinary wisdom and vision and deserved to be compensated accordingly. Why aren't they demonstrating these preternatural abilities to the benefit of the shareholders?
It's a good thing executives are so extra-ordinarily well-compensated. The first time an Artificial Intelligence can utilize a corporation's human resources that efficiently, they, too will start joining the ranks of the laid-off. Only whatever savings the made from those fat paychecks will allow them to distinguish themselves from the peons they sent before them.
What a horribly inaccurate and misleading statemented. It'll actually be the 80% of staff still employed tomorrow... not 93%.