Thread regarding Cisco Systems Inc. layoffs

When you look at the numbers presented in the Earnings Call, does anyone really believe this is not about OPEX cuts?

Great summary thank you! Just one last bullet you forgot:

• Chucky concluded the call by reminding the audience that he has a math degree and that he finally got around to pretend reading one those fake books from his fake home office Webex background. Then Fran giggled.

Hello Original Poster - thanks for sumarizing things for us in a nice way!

Kudos!

Anyone know about how much in severance package should someone with nearly 2 years at cisco as fte expect ?

They're not sharing details yet unless ELT TEAM MEMBER#3 shares it.

In the past, when they included years of service as part of the severance package, it was nothing extra for 0 - 9 yrs of service, 1 week of additional severance pay for each year of service from 10 - 19 yrs, and 2 weeks of additional severance pay for each year of service from 20 on. Someone w/ 25 yrs would get 22 additional weeks: 10 weeks for years 10-19 and 12 weeks for years 20-25.

It sounds like you'd be an employee from Dec 12 - Feb 1. If you elect to keep looking for an internal transfer, you can stay on until Mar 13. How much severance people get on/after Mar 13 is unknown, but those who exit on Feb 1 would get the paid for the severance between Feb 1 and Mar 13 plus whatever those who terminate on Mar 13 get.

Based on previous LR's where the total severance package was 4 months, it sounds like you'd get 30 day's severance after Mar 13, but they could be not giving a severance and just keeping you on the books until your last day and using the notice on Dec 12 in lieu of severance. Under CA's WARN requirements, they're only required to give 60 days notice. Dec 12th to Feb 1 is not 60 days, but if they're paying you through Mar 13th, that meets the 60 day notice requirement. They said they were being generous, so maybe there's a 30, 60 or 90-day severance pay after Mar 13.

@xkq+1jKzleZj, and what in my post made you think I said anything differently?

I simply said it was a great summation of the Check-in. That summary could have easily been done before or during the meeting and my comment has no bearing on when the summation was created, only that it was an accurate summation.

For those that follow this site, but are no longer employees, or are current red badges who couldn't watch it live and have to wait for the replay--assuming it's not blocked for them--and want to know what was announced, there's some indication that this post is real and not garbage from some troll.

I was late getting to this site today, so I couldn't really tell if this was posted before, during or after the check-in. But it was nice to see a good summary before the replay is up.

A mole in ELT comms. Why is this actually not surprising ?

Anyone know about how much in severance package should someone with nearly 2 years at cisco as fte expect ?

@yri+1jKzleZj, he posted this way before the checkin so he surely has access to PPT slides.

It's en vogue right now to do layoffs and wall street seems to like it. Since every other company is doing it, it seems a last minute idea to go ahead announce it now on the earnings call with no real plan.

This was a very good summation of today's Check-in.

Given the statement that the "severance" package would be the same regardless of which end date the employee chose, I'm wondering if it's not better to take the Mar 13th date instead of the earlier Feb 1 date (assuming you don't have to choose immediately after being notified).

The cost of benefits under COBRA is expensive, and Cisco "grosses up" the COBRA payments to cover taxes, but I'd think that remaining an employee longer and avoiding the extra COBRA costs for as long as possible would make financial sense. Given that they'll pay out the COBRA costs in Feb when you terminate early, if you chose that date, and that the IRS will withhold 24% or something like that out of it and you won't get your tax refund for another 12 months at the earliest (Mar '24), why not take the later date?

It's also easier to find a job while employed and I doubt anyone will be actively doing any work on their old (terminated) role between Dec 12th and Feb 1st, much less between Feb 1 and Mar 13. Once you're notified, your job is to find a new job. My hat is off to any who manage to find a new role quickly and double-dip dual salaries in Jan, Feb or Mar.

What I don't get is how the ELT said it was a tough call to make this decision, but that they had to make it now during the earnings call instead of waiting for the next quarter's EC.

If they were talking about it leading up to the EC, and they've done many LR's in the past, why couldn't they give the people in India what their notification date would be? It's not like the rules/laws in India have changed since the last LR, so they already know how much notice they have to give.

And this, "we don't know who are being impacted yet, we're still making sure we have the right lists" so we can't notify the US workers until the 12th is BS. Managers, Directors, Sr. Directors, VP's and SVP's have more than 5 yrs of service w/ Cisco and have extra vacation time meaning they have to take more time off per year than individual contributors, so the decision makers will probably be taking extra time around Thanksgiving. How much time do they really have to "finalize" these lists, notify managers & schedule their training on how to read a script, and get ready for Dec 12th? They've managed just fine in the past making the announcement during an Earnings Call and notifying impacted employees the next day, so what really gives this year?

Does anyone know if the Webex team is impacted ?

Were ET&I or ST&O impacted at all?

I attended today's company check-in and can verify these statements are accurate.

Do we know which Business groups will be impacted the most ?

Thanks for sharing.

This is exactly what was said in the checkin... Who are you?

Wow..you are definitely an insider.
Thank you for sharing.

Any other group confirmed ?

This is not good news. If they are doing this under the pretext of "rebalancing business", then what are they going to do early next year under the pretext of "recession is here". Whoever does not get affected should do well to have a back-up employment plan post March 2023.

Before at least John would act down about it. Doesn't seem like ELT cares one way or another...just that they are "transparent." Should we be using transparent lube?

Those affected won't even find out until 12/12 either, you can add that to this list. Seems pretty in line with what I've heard. It will be spun as a "rebalance", that will be today's check-in drinking game

I have seen few of your posts / comments here and they are all accurate. Thanks "ELT TEAM MEMBER #3"

Actually, this poster is working off if slightly outdated information. There is an early retirement option. Age plus years of experience must be greater than or equal to 55. The catch is you must be in one of the organizations that is targeting for downsizing.

This actually matches up with what I've been told so far, this poster seems to know what they're talking about

so one can coast for 4 months til March and get 6 more months of severance, did I get this right?

WOW, okay THIS one sounds like they actually KNOW something. Thank YOU.

Thanks. Maria confirmed there will be impacted employees in CX too.