Thread regarding Cisco Systems Inc. layoffs

No ER package this time

There will be no Early Retirement (ER) package. Only Limited Restructuring (LR) 'Pink Slips'. The ER ship has sailed and will never sail again. Unless you are one of the blessed 'Leadership Team', you should expect a boilerplate separation notice.

The separation time is generous and they know that (30-60 days). Use that time to look for another gig using the company's laptop, www connection, coffee, phones, copier, etc. Think of it as extra PTO if ya find something quickly.

It is 2016, and this is the corporate world of today. We are all replaceable commodities. Accept it, embrace it, understand the rules and move forward. Wallowing in it only let's them win. Don't do it.

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With an LR, you generally get severance in addition to the notification period (30 days in the example that was described in the post in this thread). With ER, in the past, it has been a full year of pay as the severance in addition to medical benefits, etc.

I have been at Cisco 11 years and been through more layoffs than I care to remember. I have never seen an LR where there wasn't some form of severance payment after the notification period.

However, I do not have any insight into the packages that will be offered this time.

Just my two cents.

by | Post ID:

Not 100 % sure of this but my understanding is that differences are:

Early Retirement (ER)

  • 6 months severance paid in lump sum upon exit

  • An additional week of severance for every year of service over 10

  • Medical coverage paid for a limited time

  • Stock options accelerated

  • RSUs accelerated

Limited Restructuring (LR)

  • 30 days of you hanging around work looking for another job after you get notice. Nothing really expected of you, in most cases.

  • No severance (see bullet above)

  • No paid medical

  • No Option or RSU acceleration

  • Don't let the door hit you in the a-- on the way out

For both ER and LR they have to pay you for your saved up vacation time. You can bank 280 hrs. max.

by | Post ID:

Please help me undestand the benefit of a ER over LR-is it just the optics or is there financial reward?

by | Post ID:

Actually in his bday chat in 2014 ( one of the last as a CEO), he specifically said that the Lay offs are the new normal, and that we should expect it every Year. He justified it as a need, because he said, with every acquisition, cisco aquires Human resources, and hence the need for Cuts.

by | Post ID:

What happened to the statement made by JC in 2001 that they were going to make downloadbesttorrentblog.ru big so they would never have to do another one? He also made the statement that layoffs are an indication of failure by management. He also use to come out with the BS about how the 7,000 people he laid off while at Wang sent him into a deep depression. Guess he's gotten a lot more resilient while at Cisco.

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It is a shame that the employees pay the price for senior management's inability to do their jobs. They should take a pledge - if the at least 2 layoffs take place under their watch - then they should resign for their incompetency.

by | Post ID:

"This not the way any healthy company operates. The damage to morale is permanent ; Any loyalty by employees to Cisco has become non-existent and they will never recover."

Couldn't agree more! I've been at Cisco for 11 years and the executive team is totally out of touch with their employees. It's like The Emperor's New Clothes. Employee morale and loyalty are at an all-time low.

by | Post ID:

If you are in sales, not even making your quota will keep you safe. I know 4-5 people who were Sales Champions and still were affected by an LR.

I agree that morale is absolutely terrible at Cisco and productivity takes a major hit every summer due to downloadbesttorrentblog.rus and political posturing.

Topping that off, they got rid of all sales manager bonuses, so the bosses want to tap the brakes at the end of the fiscal and save some for next year.

The culture of Cisco used to be amazing, but now they let finance run the company. They are so concerned with opex and propping up the stock price, to the detriment of revenue growth.

There won't be many more "network refresh" cycles, and selling "software" is not working.

by | Post ID:

Thanks BCR. How many years were you at Cisco?

by | Post ID:

- I was laid-off in February after a 2 week notice.

-60 days of in lieu pay

-60 days severance pay

-PTO converted into cash

-4 months payment for COBRA coverage

-Received mid-year bonus b/c I was still an employee when Q2 closed

And I'm still looking for a job.

by | Post ID:

They haven't done 30 - 60 days for the last two rounds and I don't expect them to do it this time. The operating mode now is:

  1. Close as many open reqs as possible.

  2. Give notice with a 2 week window.

  3. Wait until 2 week window is up and slowly open the new reqs.

This gives them the OpEx savings of the people they laid off, and another OpEx bump from the people that leave their jobs to take the newly opened jobs. If their old position isn't backfilled (often it isn't) then bigger OpEx Savings. Even it it is you generally get a bump of at least a month while the backfill is being hired.

by | Post ID:

Not sure I get the significance of your reply "You go figure....". Its years out of date.

by | Post ID:

You go figure: />

Cisco Systems Inc. (CSCO) is offering some of its employees the option of retiring early, part of a series of moves to refocus the company. It's the latest development for the company, which is planning a number of "targeted moves" in the coming months as it shifts its priority back to its core networking business.

Employees who are at least 50 years old, and have a combined age and years of service of at least 60 as of July 8 are eligible for the program. The company hopes to achieve some cost savings through the program, according to memos it sent to employees. "Cisco employs a variety of different methods to control costs and align investment dollars, and offering this voluntary early retirement program to those eligible employees in the U.S. and Canada is part of our ongoing commitment to responsible business management," said a company spokeswoman.

Cisco already took more drastic action earlier this month when it ended its Flip consumer video camera business, resulting in a loss of 550 jobs and a $300 million charge. The company said it was undergoing a "deep portfolio analysis," suggesting more cuts ahead. The company has been undergoing a shift in business strategy after posting several quarters of disappointing results, particularly in the key switching business. It has also been hurt by cutbacks in spending from governments and large corporations. The company reports its fiscal third-quarter results on May 11.

This isn't the first time Cisco introduced an early retirement program. The company previously offered one in 2009, but the new program expands the number of eligible employees. A spokeswoman declined to say how many people were eligible for the program, or how much it would save. Cisco shares rose 0.6% to $17.29 in recent trading.

by | Post ID:

The separation time is generally 30 days where you can stay on the systems, look for a job internally, etc. After the separation period, there is generally a package beyond that which correlates to your years of service in some way. Does anyone have any details on that?

by | Post ID:

I have been at Cisco over 15 years and have gone through TWELVE layoffs. This not the way any healthy company operates. The damage to morale is permanent ; Any loyalty by employees to Cisco has become non-existent and they will never recover.

It was once a good company but is now in a downward spiral (similar to the IBM of past years).

.

by | Post ID:

I agree with *wcu.

by | Post ID:

Accept it, embrace it, understand the rules and move forward

I do not think people want to embrace it. People have had it with corps and execs taking all the benefits of growth, that's what you see on both sides (dems and republicans) - people had it...

Look at millenials, they do not take sh-- from anyone, they have 0% loyalty, they want everything and if they do not get it they move on and they complain a lot - they learned many lessons by watching us (their parents) bend over and be abused

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