Cisco braces for biggest layoffs in its history--because poor management decisions

Sharing FOUR companion stories. This sums up in a nutshell WHY these tax gifts are bogus.


http://news.yahoo.com/s/nm/20110513/tc_nm/us_cisco_14
(I have to wonder if THIS is in response to the FOURTH story posted--just one big circle-jerk for the American taxpayer)
>>>snip
But this time, Cisco cannot point to bad market conditions or a weak economy as excuses for wielding the ax to its payroll. Instead, Chambers last month took responsibility for mistakes in managing Cisco, saying it needs to focus on its core businesses and be more disciplined about expanding into new areas.

Thus, some of the layoffs are expected to come from businesses that Cisco pulls out of in coming months. Chambers, who has led Cisco for 16 of its 26-year history, has said he will pull out of some nonstrategic areas where Cisco is not the No. 1 or No. 2 player.

A month ago Chambers said Cisco would dump its Flip video camera business, ax 550 jobs and take a charge of $300 million related to the move.


http://www.bloomberg.com/news/2010-09-10/cisco-ceo-chambers-s-2010-compensation-doubled-to-18-9-million.html

Cisco CEO Chambers’s 2010 Compensation Doubled to $18.9 Million (company down 14% but DOUBLES CEO pay)

>>>snip
Cisco Systems Inc. Chief Executive Officer John Chambers earned $18.9 million in total compensation in fiscal 2010, more than double his earnings the previous year.

Chambers, 61, received a salary of $382,212, the San Jose, California-based company said today in a regulatory filing. He was awarded stock options valued at $5.69 million and got $4.6 million under the nonequity incentive plan, neither of which he received a year earlier, when his total compensation was $9.16 million.

Chambers, at Cisco since 1991, has expanded the company beyond its main business of routers and switches into areas such as videoconferencing and green energy. Cisco is the world’s largest maker of networking equipment.

Cisco, down 14 percent this year in Nasdaq Stock Market trading, rose 1 cent to $20.62 in trading today.

http://bradreese.com/blog/eldridge-cisco-4-7-2010.htm
Did Cisco fail to create new jobs for the tax breaks it received? (Broken promises April 2010)

>>>snip
Massachusetts State Senator - Jamie Eldridge, has been working on legislation that would hold Cisco accountable for not achieving the number of new jobs it promised in exchange for the tax breaks it received to do so, since Cisco built a campus in Boxborough, MA (which is located in Eldridge's voting district):

"The promised jobs never materialized, and there was no ability for the state to recapture the lost money."

Eldridge continued, "We want to know if corporations are creating these promised jobs and, if not, the state should be able to take back those tax incentives. We can't manage what we can't measure. We need more transparency so the public knows the value of these tax expenditures at a time when budgets are being cut."

To hold Cisco accountable and responsible for creating the new jobs it promised in exchange for the tax breaks Cisco received, Eldridge has drawn up an amendment to the Economic Development Reorganization Bill (S2345)

http://wraltechwire.com/business/tech_wire/opinion/blogpost/9340892/
Cisco's CEO lobbies on '60 minutes' for tax break (Even after breaking promises--still wants government welfare)

>>>snip
RESEARCH TRIANGLE PARK, N.C. – John Chambers didn’t duck the cameras of CBS’ “60 Minutes” when reporter Lesley Stahl went in search of U.S. firms moving headquarters and operations offshore to avoid U.S. taxes.

In an interview reminiscent of the Mike Wallace days, Stahl questioned Chambers pretty aggressively about why Cisco is keeping billions in profits parked away from U.S. taxes. To his credit, Chambers not only agreed to do an interview unlike other firms Stahl sought – including a personal visit to Zug, Switzerland, of all places. He then lobbied once more in favor of a one-time reduction in the U.S. corporate tax rate of 35 percent so Cisco and other companies could bring profits home. (Read here and here for our previous coverage of the issue.{{/a}})

The term is “repatriation” for the money transfer. And Chambers said a lower rate would bring hundreds of billions of dollars back. He then said that money would lead to investment and jobs here rather than overseas.

"You lower the rate from 35 percent to 20 percent. You lose something like $2 trillion in taxes. We have a horrible deficit crisis, debt crisis. That's almost too much money to lose. What's your answer to that?" Stahl said.

"My answer's very simple: every other developed country in the world has already done this. I'm not asking to give me a favor, or a hand out," Chambers responded..

"You know what: it sounds it," Stahl remarked.

So where are the jobs?

</pollyanna>

The jobs are being cut because they didn't work out. Maybe the error was in creating them on the first place.

The people whose jobs were created then lost probably don't have a reason to complain.

They are in essence divesting their corp of their high paid long term employees and hiring third world entry level scabs.