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Cisco Terminates 6000 Workers While Buying Back $1.5B In Stock

posted by n1 on Tuesday August 19 2014, @11:29PM   
from the interesting-arithmetic dept.

gewg_ writes:

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).

• There's a shortage! There's a shortage! (Score: 3, Interesting) by PizzaRollPlinkett on Wednesday August 20 2014, @11:23AM

  by PizzaRollPlinkett (4512) on Wednesday August 20 2014, @11:23AM (#83486)

  My hobby over the past few years has been keeping track of technology companies as they purge workers. Then, when I see talk about a "shortage" of workers, I think about the long list of purges. Unfortunately, worker purges happen so often that I have trouble remembering all of them. I should have made a written list. Someone ought to start a web site that lists technology-industry purges.

  I keep saying this, and I ought to just stop, because I can't say it with every single one of these articles, but this short-term cutting mentality destroys companies. In the short term, cutting employees or portion sizes or whatever juices a manager's bonus, but in the long term it destroys the company.

  The problem is, managers get rewarded for cutting in the short term, so they just keep doing it.

  So we have a 300-count box of Kleenex down to 210 tissues. Bags of shredded cheese, sold by weight, are mostly crumbs. Ziploc just made their plastic bags thinner. Tech companies purge workers.

  But, at some point, you can't cut any more. And today's professional management doesn't know what else to do. They're not capable of growing and innovating.

  --
  (E-mail me if you want a pizza roll!)

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• Re:There's a shortage! (Score: 0) by Anonymous Coward on Thursday August 21 2014, @12:05AM

  by Anonymous Coward on Thursday August 21 2014, @12:05AM (#83758)

  http://fuckedcompany.com/ [fuckedcompany.com]

  https://en.wikipedia.org/wiki/Fuckedcompany [wikipedia.org]

  Parent