"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Monday, July 11, 2011

John Chambers (Cisco) to fire 10,000 and still wants a tax holiday to create jobs

"Mamas Don't Let Your Babies
Grow Up to be Cowboys"
Make 'em be CEO's and politicians and such

Encourage and guide them to be CEO's of America's finest corporate institutions. You know, the ones that snuggle up to our D.C. elected "representatives" under the pretense of assisting them to write policies and tax code that will create investments and employment in the United States. You know, the pretty boys and girls paraded around the CNBC set talking the talk, pushing their agenda. The are the likeable ones and you never see the knife until it is planted deeply and firmly in your back. 

Welcome to the way America does business.  

Cisco Systems Inc. Chief Executive Officer John Chambers earned $18.9 million in total compensation in fiscal 2010, ($51,780 per day) more than double his earnings the previous year.

July 2011:
Cisco Systems has cut its income taxes by $US7 billion ($6.7 billion) since 2005 by booking roughly half its worldwide profits at a subsidiary at the foot of the Swiss Alps that employs about 100 people.

Now Cisco, the largest maker of networking equipment, wants to save even more by asking US Congress to waive most federal taxes due when multinationals bring such offshore earnings home.

John Chambers, has led the charge for the tax holiday, which would be the second since 2004. He says it would encourage companies to ''repatriate'' as much as $US1 trillion held abroad, spur domestic investment and create jobs.

Bloomberg July 11, 2011
Cisco Systems may cut as many as 10,000 jobs, or about 14 percent of its workforce, to revive profit growth, according to two people familiar with the plans.

The cuts include as many as 7,000 jobs that would be eliminated by the end of August, said the people, who asked not to be identified because the plans aren’t final. Cisco, based in San Jose, California, is also providing early-retirement packages to about 3,000 workers who took buyouts, the people said.

Eliminating jobs will help Cisco wring $1 billion in expenses in fiscal 2012, the company said in May. Cisco expects costs of $500 million to $1.1 billion in the fiscal fourth quarter as a result of the voluntary early retirement program, it said in a quarterly filing.

“We will provide additional detail on the cost reductions, including layoffs, on our next earnings call,” Karen Tillman, a spokeswoman for Cisco, said in reference to an earnings call scheduled for early August. She declined to discuss job cut figures.

Trimming about 5,000 jobs would reduce operating expenses by about $1 billion annually and boost 2012 earnings by about 8 percent.

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