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Print 16 comment(s) - last by herbstemple.. on Aug 8 at 6:34 PM

3,000 workers are taking early retirement

Cisco is facing tough times as it tries to slash its budget to free up some money. Anytime a major tech firm starts talking about saving huge sums of money, you know that layoffs aren’t far behind. Cisco started talking about smaller scale layoffs a while back and it is now talking about large-scale layoffs with some starting as soon as the end of August.

Sources familiar with the cost cutting measures are saying that 10,000 jobs will be eliminated and 7,000 of those will be cut by the end of August. The additional 3,000 jobs are being eliminated with early retirement packages. The 10,000 employees that are being let go make up 14% of the global Cisco workforce.

Cisco cut 550 jobs when it killed the Flip line of video cameras. The additional workers that will be cut are part of the plan Cisco outlined in May to save $1 billion. The company has already stated that the costs for the early retirement program will add anywhere from $500 million to $1 billion in Q4. The early retirement package includes a year's salary and medical benefits.

Cisco spokeswoman Karen Tillman said, "We will provide additional detail on the cost reductions, including layoffs, on our next earnings call."

Analyst Brian Marshall from Gleacher & Co said, "The revenue trajectory hasn’t been where it should be. The company is not staffed on an appropriate level. They simply have too many employees."

Cisco is still seeing the erosion of its market share in the important networking realm where it generates most of its profits. Cisco has lost 6.4% of its global market share taking it to 54.2% of the market. While Cisco is shrinking, its main competitor, Juniper, is growing. 



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Cisco's in trouble!
By herbstemple on 8/8/2011 6:34:29 PM , Rating: 2
With the ultra complex Cisco UCM and the fading integration with Cisco Unity and Exchange it seems the writing on the wall is beginning. It is at this time an easy sell to switch to Microsoft Exchange UM over Cisco Unity.

Microsoft's strengths have always been to streamline implementation and administration with ease of use for administrators. By them entering into the IP telephone market with the Lync Enterprise Voice solution a lot of us that have been jaded by Cisco UCM now have a viable option. Although I think in this particular release (2010), it's a bit not-ready-for-primetime, the following Lync release expected in 2012 might hit the nail on the head- especially if it addresses the shortcomings Lync has with advanced queueing and routing that IPCC provides for UCM.




"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer

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