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ZeroHedge reports:
Cisco reported a whole lot of numbers as part of its Q4 earnings release. For the most part these were largely irrelevant, but for the pedants out there here is what Wall Street is focusing on: revenue and EPS beats of $12.36 billion ($12.15 billion estimated) and $0.55 ($0.53 estimated) even as Chinese sales continue to crater, plunging 23% in the quarter: thank you NSA.
But the punchline was revealed into the conference call when John Chambers announced CSCO would proceed with another mass layoff, firing 6,000 people or 8% of its workforce.
Putting this number in context, CSCO also announced it had just spent $1.5 billion in the quarter to repurchase 61 million shares of its stock, bringing the total for 2014 to $9.5 billion (including $3.8 billion in dividends).
(Score: 2, Informative) by Anonymous Coward on Wednesday August 20 2014, @12:12AM
Dumping employees? that's hard to figure, unless the turn down in sales is expected to continue.
https://finance.yahoo.com/news/now-better-idea-where-many-004800420.html [yahoo.com]
They are downsizing in areas where their sales are hurting. They are not going to double down. Thats called flushing good money after bad. They probably will be hiring in other countries where business is growing.
HOWEVER, 20billion in debt. Means they probably have huge sums locked up overseas (50billion) and are borrowing domestically to pay for dividends. That is not healthy.
(Score: 2) by Nerdfest on Wednesday August 20 2014, @02:29AM
They have also demonstrated that their equipment can't be trusted overseas, so spending more money there is probably not a great idea unless they're bribing buyers.
(Score: 4, Informative) by TheGratefulNet on Wednesday August 20 2014, @02:47AM
they are not alone; their equip (AND ALL THE REST MADE IN THE USA) is under the calea laws and there HAS to be wire-tappable ways into the box. its called 'lawful intercept' and has been a US rule for well over 10 yrs (probably more, but I've been aware of LI stuff for at least 10 yrs).
this is not the same as the NSA spying, but again, why single out cisco when its not a company choice, its forced on you by US rules (both real and imaginary).
cisco has over 70k employees and many of them are deadwood. ob disc: I work at cisco and I see the huge diff between low quality bullshit employees and the real router/switch gurus. it didn't help things that so much was outsourced to india; but even many of the US employees are indian transplants and, well, not that many are really top notch, sorry to say.
sadly, it will be the higher paid guys and the older guys who will be let go. the cheaper slaves will be kept, as always ;(
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