Thousands of soon-to-be former Cisco employees will have reason to sing the summertime blues as the networking specialist gets ready to cut 15 percent of its workforce. Along with selling a manufacturing facility, the cost cutting moves are intended to save the company in the neighborhood of $1 billion and turn around its financial future.
Cisco, the largest maker of networking equipment, is featured in a number of TV shows and movies, and fans of 24 will remember Cisco technology helping Jack Bauer save the world. "Welcome to the human network," is the company's advertising slogan, and according to a Bloomberg report, Cisco's internal human network is going to be cut down by as many as 10,000, or about 14 percent of its workforce.
Clark Griswold went off the deep end when he received a "Jelly of the Month" membership in place of a holiday bonus check, but at least he wasn't laid off. The same can't be said for some 650 to 700 Yahoo employees expected to lose their jobs today, AllThingsD.com reports.
Yahoo's product division will bear the brunt of this round of layoffs, and mostly here in the U.S. If all this weren't crummy enough, those laid off will be asked to leave immediately.
If there's a bright side to all this, it's that the number of pink slips is about half of what was initially reported. Back in November, TechCrunch said Yahoo was planning on severing about 20 percent of its 6,500 workforce, which Yahoo said was "misleading and inaccurate."
Citing "a person familiar with the matter," The Wall Journal is reporting Microsoft plans to hand out pink slips to some employees, possibly as soon as this week.
It isn't known exactly how many employees are being let go, but according to WSJ's source, it will be much less than the 5,000 or so workers the software juggernaut laid off last year.
No one section will bear the brunt of the cuts, and instead Microsoft is expected to lay off employees from various divisions. The small number of layoffs is also in line with similar reductions in staff Microsoft has done in the past, the un-named source said.
Boeing last week sent out 60-day layoff notices to 1,000 employees, about 800 of which went to employees of Boeing's engineering, operations, and technology unit. Most of those 800 are in IT, said Tim Healy, a company spokesman.
By the time the 60-day deadline rolls around, there's a chance retirements and other forms of attrition cold scale back some of the job cuts, "although it's impossible to predict how often that could happen or how many employees will leave the company," Healy added.
The most recent layoffs are the latest in Boeing's plan to cut some 10,000 jobs overall. Boeing employees about 158,500 people, including 18,000 in its engineering and technology group. Last month, the company reported record revenue for 2009 at $68.3 billion, up from $60.9 billion in 2008.
Lest anyone thought Microsoft was kidding about slashing its workforce by 5,000 when first announced a year ago, the Redmond outfit has met its goal, and well ahead of its self-imposed June 2010 deadline.
Steve Ballmer's plan for mass layoffs was the first in the company's history, and it has already handed out 5,300 pink slips, or 300 more than originally announced. About 800 positions were eliminated in the company's fiscal second quarter ended December 31, 2009, with Microsoft reporting it had paid $59 million in severance pay related to those layoffs.
When Ballmer first announced the cuts in January, 2009, he said they would continue over the next 18 months and might reach as high as 5,000. With five more months still left to go, Microsoft has overshot its goal by 300. From a bean counting perspective, the layoffs have been a success, helping Microsoft report a record $19 billion revenue in the last quarter.
In a filing with the U.S. Securities and Exchange Commission on Tuesday, Sun revealed it plans to eliminate up to 3,000 jobs, or about 10 percent of its global workforce, ZDNet Asia reports.
This marks the second major round of job cuts in a year for Sun, who last November announced plans to reduce its workforce by up to 6,000 jobs, or 18 percent of its global staff, in a major restructuring effort. Those cuts were already disclosed by the time Oracle announced its $7.4 billion takeover bid for the struggling server maker.
As the Oracle deal sits in limbo awaiting approval from the European Commission things could get even worse for Sun.
"Sun is losing $100 million a month, we'd like to get this thing done," Larry Ellison, CEO for Oracle, said at an industry gathering in Silicon Valley last month.
Oracle has so far remained quiet about the latest round of job cuts taking place at Sun.
Verizon on Monday said it plans to cut more than 8,000 employee and contractor jobs before the end of the year in the wireline business, which it hopes will speed up efforts to keep costs in line, according to chief financial officer John Killian. But unlike in recent years, the company has no plans of offsetting the wireline layoffs with hiring in its wireless business.
"We probably will not have large-scale hiring until we're out of the recession," said Denny Strigl, Verizon's Chief Operating Officer.
The news comes after the nation's largest wireless carrier reported a 21 percent drop in second-quarter profit, although the company's earnings did creep slightly higher than Wall Street expectations. Verizon earned $1.48 billion, or 52 cents per share, in the three months ended June 30, down from $1.88 billion, or 66 cents per share, a year ago.
Revenue rose 11 percent to $26.86 billion from $24.1 billion a year ago, which is what Wall Street had expected. Much of that increase can be attributed to the purchase of Alltel in January, otherwise revenue would have only increased 1.9 percent.