John Chambers does not get his tax holiday so 6,500 are fired & Mexico picks up another 5,000

Chief Executive Officer John T. 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

$1 trillion held abroad, spur domestic investment and create jobs.

By: Benjamin Pimentel
7/18/11

SAN FRANCISCO (MarketWatch) — Cisco Systems Inc. announced Monday that it plans to cut 6,500 employees, as part of efforts to lower costs.

The tech bellwether also said it was moving another 5,000 jobs to Foxconn Technology Group, as part of a sale of its manufacturing facility for set-top boxes in Mexico.

The company said the cuts include 2,100 employees who opted to take part in a voluntary early-retirement program. The plan also includes a 15% reduction of employees at the level of vice president and above.

Cisco also said that it has agreed to sell its set-top box manufacturing facility in Juarez, Mexico to Foxconn Technology. The sale would mean that 5,000 of the facility’s workforce will become Foxconn’s employees in the first quarter of fiscal 2012, according to the company.

The maker of networking gear recently embarked on new initiatives to reduce annual costs by $1 billion.

Analysts had been speculating that Cisco would drastically cut its workforce, with reduction estimates ranging from 5,000 to 10,000 jobs. “No surprises, but part of the healing process for Cisco to get back up on its feet,” Gleacher & Co. analyst Brian Marshall said of the announcement.

Shaw Wu of Sterne Agee also called the news “painful steps in the right direction.” “This should help lower overhead and allow the company to be more competitive in the marketplace,” he said.

Marshall at Gleacher added there had been rumors that Cisco was considering selling the Juarez facility.

But Wu pointed out the sale was a surprise — “a pleasant one, I would add, because it’s always tough to see people lose their jobs. At least now they will be at Foxconn. … Cisco really shouldn’t be in the business of manufacturing, as they are a designer and marketer of products.”

Over the past few months, Cisco has shut down its Flip video-camera business and moved to simplify its business operations through a “streamlined operating model.”

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.