CEO John Chambers is trying to keep the Cisco Systems ship from sinking, and to lighten the load it appears he's willing to dump many of his crew members overboard.
The company could lay off as many as 10,000 employees by the end of this summer, two people familiar with the situation told Bloomberg. About 7,000 employees will be involuntarily eliminated, with the rest of the reductions coming through early-retirement buyouts. The layoffs would reduce the overall staff by about 14%.
Cisco acknowledged "a planned reduction in workforce" in a statement to FINS and said that more details would be coming in an earnings call on August 10.
Cisco said that it would be reducing its headcount when it announced the euthanizing of its Flip camera division, but the size of the cuts being reported this morning is larger than most expected. The San Jose, Calif.-based networking company has been trying to reorient itself toward success after a string of ill-advised acquisitions and amid mounting competition from rivals like Hewlett-Packard and Juniper Networks.
Cisco is a classic start-up success story, growing from a mom-and-pop operation into an $85 billion company. But analysts say that the company has simply grown too large and that it can't sustain its 70,000-plus workforce.
One commentator, though, argues that the layoffs could lead to an even faster downward spiral for the company. Cisco's problem is a lack of innovation, Seeking Alpha writes, and how can it innovate more with less employees? Not to mention the impact the jobs cuts will have on employee morale, perhaps prompting remaining workers to switch companies before the next round of pink slips.
Green Tech Doomed (Cnet)
The reluctance and inability of governments around the world to spend money means green technology is doomed, a new article in the journal Foreign Affairs argues. The green tech industry is still largely reliant on governmental customers.
Good Retail Tech Jobs (Reuters)
Retailers are sitting on lots of cash and about half say that they'll spend it on IT and analytical tools to expand their businesses. Retailers are especially interested in using analytics to improve sales and marketing.
Bridging the Skills Gap (Economix)
More job seekers are taking classes at local community colleges to bone up on the skills they need to get jobs in aerospace and biotechnology.
Facebook Poaches Another Googler (AllThingsD)
After five years working at Google, Tom Stocky is the latest Googler to defect to Facebook, where he will be a director of product.
Color Loses Exec (Business Insider)
DJ Patil has resigned as chief product officer at photo-sharing start-up Color. Patil joined the company just six months ago after a two-year stint at LinkedIn.
Life Inside Early Google (WSJ)
Google's 59th employee has written his memoirs of what it was like to work there before the company became a household name. Not a lot of scandal or tawdry details, but the book offers an inside look at the company's rise.
H-P Re-org (San Jose Mercury News)
H-P has appointed Jon Rubinstein, an Apple veteran who helped develop the iPod, as its head of product development for PCs, tablets and smartphones. Rubinstein joined H-P through the company's acquisition of Palm, where he was CEO.
Hedgies Seek Techies (WSJ)
Hedge funds are increasingly investing in private Internet companies like daily deals site LivingSocial in an effort to cash in on the sky-high valuations tech companies are attracting.
Google+ A Big Hit (Cnet)
Is Mark Zuckerberg shaking in his hoodie somewhere? Google's new social networking service is expected to reach 10 million users today, and 20 million by Sunday. The company only launched the thing two weeks ago.
Buzz Around the Office
Pun of the Day (Mashable)
You're not unqualified for the job...you're just "differently" qualified.
List of the Day: Horrible Boss Tips
There are things you can do to make working with a bad boss a little more tolerable.
1. Try to limit your interactions so you spend less time with them.
2. Speak up for yourself; it may help you gain respect.
3. Look on the bright side: You're learning what not to do when you're the boss.
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