Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

[Slimprofits]

http://www.informationweek.com/news/...ches/231002056

Cisco announced Monday that it will reduce its workforce by 6,500 employees in the first half of August as part of its effort to adjust its business to increased competition in the switching and router market.

The reduction consists of 2,100 employees who have elected to take early retirement and 4,400 who will be laid off. Cisco noted that the ranks of vice president and above will experience a 15% reduction in force and the full-time, regular workforce a 9% reduction. Those in the U.S. and Canada will get the word in the first week of August. Other global workforce reductions will occur soon after in compliance with local regulations, Cisco officials said.

[don]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

and on the retail and municipal fields of play . . .

The Borders Group may be near liquidation (10,700 employees) after a committee of its unsecured creditors on Wednesday rejected a proposed takeover by the Najafi Companies, a private equity firm.

In a motion filed with the federal bankruptcy court in Manhattan, the committee said it was concerned that the agreement could allow Najafi to buy the company at a low price and then liquidate Borders later without letting creditors benefit.

The committee’s motion essentially argued that Borders might be worth more as a court-supervised liquidation than as a company sold to a bidder.

“It neither maximizes value for the benefit of unsecured creditors nor provides for the other benefits of a going concern,” the committee wrote in the court filing.
The preferable alternative, according to the committee, is to fall back upon a bid proposed by a group of liquidator firms led by the Gordon Brothers Group and Hilco. Such firms wind down failed companies and sell their property with the aim of maximizing money for creditors. They have been involved in closing dozens of retailers in recent years, including Circuit City and Linens ’n Things.

http://dealbook.nytimes.com/2011/07/...d-takeover-by/

SAN FRANCISCO (CN) - Layoff notices are in the mail to 200 workers from San Francisco Superior Court, a 40 percent reduction that Presiding Judge Katherine Feinstein blamed squarely on Sacramento, saying: "Our government and Legislature have used our judiciary as an ATM to solve their budget crisis." The court also will shut 25 courtrooms.

"This is a grim day for our court," Feinstein said Monday, as she spoke on cuts to the court's operating budget. "We now know the trial courts are the lowest priority in Sacramento."

Feinstein did not spare the Judicial Council of California and the Administrative Office of the Courts, saying, "I include myself in the growing list of judges frustrated by the J.C.C. and the A.O.C."

The Superior Court's 2011 fiscal year budget of $75 million is down from $98 million in 2008, Feinstein said, and the court already has gone through its $10 million rainy-day fund. Unpaid furloughs and a hiring freeze that reduced the head count in the past 3 years from 591 to 483 employees could not prevent a $13.75 million deficit for 2011.

http://www.courthousenews.com/2011/07/19/38254.htm

[dcarrigg]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

and on the retail and municipal fields of play . . .

The Borders Group may be near liquidation (10,700 employees) after a committee of its unsecured creditors on Wednesday rejected a proposed takeover by the Najafi Companies, a private equity firm.

In a motion filed with the federal bankruptcy court in Manhattan, the committee said it was concerned that the agreement could allow Najafi to buy the company at a low price and then liquidate Borders later without letting creditors benefit.

The committee’s motion essentially argued that Borders might be worth more as a court-supervised liquidation than as a company sold to a bidder.

“It neither maximizes value for the benefit of unsecured creditors nor provides for the other benefits of a going concern,” the committee wrote in the court filing.
The preferable alternative, according to the committee, is to fall back upon a bid proposed by a group of liquidator firms led by the Gordon Brothers Group and Hilco. Such firms wind down failed companies and sell their property with the aim of maximizing money for creditors. They have been involved in closing dozens of retailers in recent years, including Circuit City and Linens ’n Things.

http://dealbook.nytimes.com/2011/07/...d-takeover-by/

SAN FRANCISCO (CN) - Layoff notices are in the mail to 200 workers from San Francisco Superior Court, a 40 percent reduction that Presiding Judge Katherine Feinstein blamed squarely on Sacramento, saying: "Our government and Legislature have used our judiciary as an ATM to solve their budget crisis." The court also will shut 25 courtrooms.

"This is a grim day for our court," Feinstein said Monday, as she spoke on cuts to the court's operating budget. "We now know the trial courts are the lowest priority in Sacramento."

Feinstein did not spare the Judicial Council of California and the Administrative Office of the Courts, saying, "I include myself in the growing list of judges frustrated by the J.C.C. and the A.O.C."

The Superior Court's 2011 fiscal year budget of $75 million is down from $98 million in 2008, Feinstein said, and the court already has gone through its $10 million rainy-day fund. Unpaid furloughs and a hiring freeze that reduced the head count in the past 3 years from 591 to 483 employees could not prevent a $13.75 million deficit for 2011.

http://www.courthousenews.com/2011/07/19/38254.htm

Sorry Don, I just saw this after I had posted it as its own thread.

As usual with the news, you beat me to the punch!

[don]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

No problem, I added a comment to yours.

It's all good . . .

[Slimprofits]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

State Street cutting 850 technology jobs, most of them in Bay State

The Boston financial services giant said all the affected workers are in information technology and described the cuts as part of an “IT transformation,’’ where transactions and data can be processed in less costly ways.

[touchring]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

State Street cutting 850 technology jobs, most of them in Bay State

The Boston financial services giant said all the affected workers are in information technology and described the cuts as part of an “IT transformation,’’ where transactions and data can be processed in less costly ways.

Moving the work to India.

[don]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

"Transforming" Nice.

[Starving Steve]

Re: Cisco Layoffs: 6,500 Jobs Cuts, $1B Expenses Trimmed

I wonder how many Cisco lay-offs and early retirements will occur in the Santa Clara Valley ( the Silicon Valley ) of California? And if there are many lay-offs in the Santa Clara Valley, would there be an impact to the housing market--- a market that is still outrageously priced?

Many of the "good parts" and "need-to-knows" are missing in this story. Is Silicon Valley going to skate through this, just the way it has skated through other down-turns before? Who else is going to lay-off in the Santa Clara Valley? What are the "knock-on" effects of these job losses going to be? Yes, Boston and Cuidad Juarez will take a hit from the Cisco lay-offs, but where else in the world is Cisco laying-off?

Imagine owning an $800,000 or million-dollar post-WWII bungalow in the Santa Clara Valley and you get laid-off, still with mortgage payments to make!... And then, who is going to buy your junk bungalow in the Valley? What bank is going to lend on it, and at what percentage of the old market value of the house?

In the Santa Clara Valley, you have the lay-offs in government employment, especially with the State of California. One-billion dollars here, and one-billion dollars there, it starts to add-up to real money--- and a real down-turn in the local economy.