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Cisco Emerges From Restructuring 13,000 Employees Lighter 138

Posted by Unknown Lamer
from the that'll-be-ten-grand-for-another-year dept.
Joining the ranks of accepted submitters, Zibodiz writes with an article in PC World about Cisco restructuring. From the article: "Cisco Systems emerged from 150 days of restructuring on Tuesday ... The networking company started to streamline its operations and refocus itself on a few core businesses earlier this year after posting disappointing financial results. The subsequent restructuring shut down its Flip consumer camcorder unit and other businesses and eliminated 12,900 jobs, with almost 23,000 employees moved in the process. Executives laid out some more details on Tuesday at Cisco's annual financial analyst conference in San Jose, California. Cisco's five areas of focus now are its core routing and switching business, collaboration, data-center virtualization, video, and tying these elements together in an overall architecture." Zibodiz further writes "Perhaps the most interesting thing to me is that Cisco had 12,900 employees that were doing things other than 'routing and switching, collaboration, virtualization, video, and ... architecture.'"
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Cisco Emerges From Restructuring 13,000 Employees Lighter

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  • by elrous0 (869638) * on Wednesday September 14, 2011 @10:22AM (#37398504)

    The traditional model towards profitability was to sell more product, grow your operation, hire more workers and build more factories, wash-rinse-repeat.

    Today it seems like the road to profitability is to not grow, increase short-term profits by downsizing, make existing workers do more work, wash-rinse-repeat.

    That's great news if you're a CEO only concerned with the short-term profitability of your brief stint as CEO (before you bail out with your golden parachute). But it's pretty shitty news if you're a worker or a long-term investor in said company. And it's even worse news if you're out of work and looking for a job.

  • by DontBlameCanada (1325547) on Wednesday September 14, 2011 @10:36AM (#37398648)

    In the spirit of "sharing the pain" all groups were tagged with layoff requirements. This included lean teams doing critical operations in core businesses (routing, aggregation, security etc).

    While the engineers are still excellent, Cisco is no longer a company run by skilled technical professionals focused on delivering quality products. Its an accounting operation infested with old-boys-clubs where decisions are primarily the result of office politics, not technical correctness. The smart people are leaving, the lucky ones are getting laid off with severance packages, the unfortunate are left holding the bag.

  • by alen (225700) on Wednesday September 14, 2011 @11:21AM (#37399210)

    kind of hard to sell more routers and switches when your 10 year old products are more than enough for a lot of your customers

  • by parallel_prankster (1455313) on Wednesday September 14, 2011 @11:38AM (#37399468)
    You have no idea how correct you are. As someone who has worked in the "core" areas, Cisco leadership now comprises of people who have stayed there due to various reasons like politics, visa issues etc etc. Most of the really smart people responsible for the networking boom in Cisco have left for greener ventures or they got tired of the politics/incompentency that is rampant in Cisco. Another example that is really close to my heart - The unit I worked for has around 500+ people out of which it is safe to say 450+ are Indians. It is safe to say the situation is the same in other units as well. The culture has become so Indianized that managers often talk in hindi and organize lunches to Indian places even if there is maybe 1 non-indian in the group (what will he do , quit ? ). The situation is so bad that even within Indians there is politics. My group that I worked on comprises of 5 people out of which 4 are from the same part of India. The 2nd level Manager only looks for people that are from the same part of India as he is. This is also visible in other groups across my BU. No problem against Indians for me, but these people brought with them a highly non-professional and obsolete management style consisting of manager-worship, no questions asked style of leadership and that was suffocating for me as a developer. Any average person like me in Cisco is bound to get frustrated and leave!. Most people there choose to stay because they have their green cards being processed and they cannot leave. The managers know that well and they try to exploit that in every way possible. The end result is an extremely mediocre management team that now faces competition from Huawei, Juniper, HP etc and has no clue how to go about it.

Humanity has the stars in its future, and that future is too important to be lost under the burden of juvenile folly and ignorant superstition. - Isaac Asimov

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