Cisco aligns with competitive reality



  • http://www.zdnet.com/blog/btl/cisco-preps-layoffs-aligns-with-competitive-reality/52219 @. said:

    Cisco is reportedly preparing to cut anywhere from 5,000 to 10,000 jobs
    by then end of August as it adjusts to the reality that it can’t command
    the prices it wants for its networking gear.

    Wait . . .  What?   They don't seem to be saying that they are selling less equipment, just that they have to sell it at a lower price due to competition from other companies.  Since it takes a certain number of people to manufacture the equipment and run the business, and they aren't claiming that sales are down, isn't this an admission that they currently have about 10,000 people who aren't really doing anything worthwhile?

     



  • I'm assuming they are going to try to increase the efficiency of the people they have left.  They can also outsource some of the stuff they used to do in-house. 

    A good portion of the cuts may have been positions that aren't part of production.  Companies will often slash their engineering departements in order to make the current bottom line look good.  This comes at the cost of having difficualty designing future products.



  • Maybe they're cutting down the process analysts? Those guys who spend their day designing processess which only add overhead to the actual production?

    Until we hear from someone inside the company, we can only guess what people are in the cut.



  • And to be fair, they aren't all real layoffs as they claim some will be early retirement deals (though removing bunches of senior people poses it's own problems).



  • @locallunatic said:

    And to be fair, they aren't all real layoffs as they claim some will be early retirement deals (though removing bunches of senior people poses it's own problems benefits).

    FTFY.



  • @frits said:

    difficualty
     

    I sensiate a spellying difficualty.



  • And so, Recovery Summer� II begins!



  • [quote user="Renan "C#" Sousa"]Maybe they're cutting down the process analysts? Those guys who spend their day designing processess which only add overhead to the actual production?[/quote]

    Hopefully they're cutting the IOS team.



  • @dhromed said:

    @frits said:

    difficualty
     

    I sensiate a spellying difficualty.

    My hunt-and-peck shows again. 



  • @El_Heffe said:

    http://www.zdnet.com/blog/btl/cisco-preps-layoffs-aligns-with-competitive-reality/52219 @. said:

    Cisco is reportedly preparing to cut anywhere from 5,000 to 10,000 jobs
    by then end of August as it adjusts to the reality that it can’t command
    the prices it wants for its networking gear.

    Wait . . .  What?   They don't seem to be saying that they are selling less equipment, just that they have to sell it at a lower price due to competition from other companies.  Since it takes a certain number of people to manufacture the equipment and run the business, and they aren't claiming that sales are down, isn't this an admission that they currently have about 10,000 people who aren't really doing anything worthwhile?

     

    Have you worked in a company before?



  • @mountain said:

    @El_Heffe said:

    http://www.zdnet.com/blog/btl/cisco-preps-layoffs-aligns-with-competitive-reality/52219 @. said:

    Cisco is reportedly preparing to cut anywhere from 5,000 to 10,000 jobs
    by then end of August as it adjusts to the reality that it can’t command
    the prices it wants for its networking gear.

    Wait . . .  What?   They don't seem to be saying that they are selling less equipment, just that they have to sell it at a lower price due to competition from other companies.  Since it takes a certain number of people to manufacture the equipment and run the business, and they aren't claiming that sales are down, isn't this an admission that they currently have about 10,000 people who aren't really doing anything worthwhile?

     

    Have you worked in a company [i]enterprise[/i] before?

    FTFY



  • @El_Heffe said:

    Wait . . .  What?   They don't seem to be saying that they are selling less equipment, just that they have to sell it at a lower price due to competition from other companies.  Since it takes a certain number of people to manufacture the equipment and run the business, and they aren't claiming that sales are down, isn't this an admission that they currently have about 10,000 people who aren't really doing anything worthwhile?

    Simple hypothetical explanation: if one of the reasons for the higher cost of Cisco products were better support (more technicians etc. available than the competition), and it turned out that that business plan wasn't working out (because customers didn't care about/perceive the difference), it would make sense to cut the number of employees without this meaning that all those people were truly redundant. For instance, if they reduced the length of the standard product warranty, it would reduce the number of staff they needed to perform repairs, take calls, etc.

     


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