After ER, LR will take place. Q1 revenues are expected to tank between 9-11% and to mitigate that shortfall, expenses need to be trimmed by a similar amount. The covid19 pandemic is not going away in the next 18 months. Cisco missed the boat to the cloud, AWS ate our lunch, Azure is eating our breakfast. Cisco webex can't beat Zoom. We can still sell boxes for routing/switching as long as Huawei is kept at bay. Our security solution thucks, Palo Alto Networks is eating our dinner.
9 replies (most recent on top)
Don't be stupid to think the ER will eliminate the LR. They already have names of people that they want to get rid of because their salaries are drastically above their value to the company. It doesn't matter age or level. If you were brought in during the extremely low unemployment commanding insane salary demands, you are a target. If you don't think so, look at all the of "jobs" available there. They are asking the outside world what they would take as a salary to do your job. As more people are laid off in these areas, jobs get scarce, and the need for a paycheck, the cost of workers decrease. When they can find someone externally that are better than you for half the price, guess what...you will be gone soon. I know the company I work for is reassessing salaries and compensation with the new norm. Instead of layoffs, it will be voluntary employment or new salary. Each position will be reassessed for current market conditions. Some positions will be told the new pay scale, where they fit in it, and what their new salary will be on day XX/XX/XXXX. They can choose to remain in the position with the new compensation number, find another position within the company, or voluntarily quit. The reasoning behind it now is that they can find someone that will take say $60,000/yr, do 80% of what you could do making $100,000/yr. Not a bad trade off. 40% cost reduction for only a 20% loss of production.
And if you don't think companies are doing this, don't be foolish. There are tons of consultants and actuaries running these scenarios for big companies like this to shed expenses. You would be shocked to see the results of many when 20-somethings are making as much as the most successful employees that have been there 20 years.
What was the esteemed Cisco management doing when Amazon was working on AWS and Microsoft on Azure? All were sleeping, never took any corrective action.
So combined LR & ER will be 20%?
This is the only way CSCO can survive. Plus I heard the WFH will lead to most employees being asked to work a 4-day workweek thereby achieving another 20% in expense reduction.
“I wanna be on the ER list. Been here for 5 years and I am 29. What are my chances?”
Snowball’s chance in hell. Thank’s for the laugh.
"I wanna be on the ER list. Been here for 5 years and I am 29. What are my chances? "
The words required to fully illustrate the insanity of this comment are not allowed here :)
29 years old? Your chances of being on the ER list are zero. Minimum age of 50. Age plus years of service must be equal or greater than 62.
"#ip route 0.0.0.0 0.0.0.0 null0 "
Sad thing is, in a "network" company, maybe 10% of the workforce will even understand that.
Your chances:
#ip route 0.0.0.0 0.0.0.0 null0
I wanna be on the ER list. Been here for 5 years and I am 29. What are my chances?