RESEARCH TRIANGLE PARK – Cisco recently confirmed it’s planning a $1 billion overhaul in expenses after slashing its revenue forecast this quarter. But when it comes to specifics – such as reports of possible buyouts or layoffs – the tech giant doesn’t want to go into much detail.

“Over the coming weeks and months, Cisco will increase our investments in key business areas that will drive customer satisfaction and partner profitability going forward and reduce investments in others. We will be restructuring parts of our business as a result,” a Cisco spokesperson said in an email to WRAL TechWire this week.

“Our employees are our priority and we are committed to providing our full support to those transitioning to new roles or teams within Cisco or leaving the company. Where possible, we will offer employees options that enable them to make decisions that best suit their career goals and personal circumstances.”

With little else to go in, it has fueled the chatter around the proverbial water cooler and online.

WRAL TechWire has been told that there was an “all-hands-on-deck meeting” last week at Cisco’s main office in the Triangle, in which early retirement (ER) options were discussed and a possible buyout floated.

The company operates one of its largest corporate campuses in RTP with several thousand employees.

Meanwhile, Cisco workers are also flocking to websites like TheLayoff.com and TeamBlind.com to discuss what they understand as coming.

Early retirement? Or layoff?

“If someone was excluded from the ER (but meets age, service, etc requirements), what are the chances that this person would then get LR [limited restructuring] in Oct?,” one wrote on Wednesday.

Responded one: “I asked that very question, and the answer is NO being excluded from the ER does not make you excluded from the LR.”

Yet another takes a more unfriendly approach toward workers being targeted: “ER is not about cost savings it’s about getting rid of dinosaurs that are holding the company back.”

On Tuesday, an anonymous contributor to the first site posted under the thread “Cisco Systems Inc. layoffs,” outlining the ER package currently in the offing.

Under the subhead “very disappointing,” the contributor wrote it was “about half of what was offered in 2011.”

It continued:

9 months base salary plus 1 week of Weekly Base Pay for each completed Year of Service from the 10th Year of Service to the 19th Year of Service; and
(ii) 2 weeks of Weekly Base Pay for each completed Year of Service from the 20th Year of Service and beyond.
Health Care Benefits Payment: A lump sum payment (grossed up to cover taxes) equal to 9 months of COBRA premiums

After a day, the posting notched 8,630 views and 61 replies.

Many of them also expressed dismay.

“ER package is not enough incentive for me to stick my neck out!,” another anonymous poster wrote. “Let them lay me off! I plan to aggressively find another job, and time it to align with the LR [Limited Restructuring package], then beg my boss to lay me off!”

Another said: “It’s all PR … don’t fall for this “ER” package.

On TeamBlind.com, another contributor posted that employees are being offered three options. Among them: a reduced work week, early retirements for people over aged 50, and an LR package starting on October 7.

“Total number to be affected not announced yet. Employees would get job at risk notification to prepare,” they said.

Cisco remains mum

Resellers of Cisco products also expect layoffs are coming.

“Cisco lays off people every year — usually in August. Though, the cuts will probably be a little deeper this time,” one reseller told tech news site CRN. 

Other changes could be coming other than layoffs and buyouts.

“I would expect Cisco will have to look at product lines and de-invest in some of the lines that aren‘t seeing traction,” a Cisco partner told CRN.

The tech sector in North Carolina has not been heavily hit by job and cost cuts during the pandemic although reductions have been made at IBM, RTI International and Lenovo.

While Cisco won’t confirm or deny such offers are already in the pipeline, a spokesperson referenced Cisco CEO Chuck Robbins earlier comments in a conference call with analysts last week.

In the Aug. 12 call, Robbins did not disclose any details about possible job cuts, but acknowledged some reshuffling is imminent.

“The changes we are making to our business reflect how we are leveraging our existing strengths, investing for growth and unlocking new opportunities,” he said.

“We will also be very disciplined on our cost structure, as we always have been. Over the next few quarters, we will be taking out over $1 billion on an annualized basis to reduce our cost structure. At the same time, we’re going to rebalance our R&D investments to focus on key areas that will position us well for the future.”

Layoffs coming: Cisco plans $1B in cost cuts after forecasting revenue drop