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Posted by ahmedomran8 10 hours ago

Cisco workforce reductions(blogs.cisco.com)
211 points | 202 commentspage 2
rnxrx 6 hours ago|
Cisco's fiscal year closes at the end of July, which makes this time of year the season for reorgs, LRs (as they're colloquially known) and the usual maneuvering that leads up to establishing budgets, sales quotas and the like. It sucks that this kind of thing has become so normalized now.
pm90 7 hours ago||
Cisco is well known to do annual layoffs, this shouldn’t be a surprise to anyone.
dalmo3 7 hours ago||
> reduction of our overall workforce in Q4 by fewer than 4,000 jobs

Interesting use of fewer.

udave 7 hours ago|
seems like the same trick as behind labelling price as $99.9
prerok 5 hours ago||
Yeah, your work was so great that we are gonna fire just 3999 of you.
banach 7 hours ago||
This is why corporations need to be owned and operated by the employees.
lbreakjai 55 minutes ago||
If 51% of the employees would benefit from firing the other 49%, you'd be as good as gone anyway. Not saying it would be worse, but the same incentives are at play.
acdha 38 minutes ago||
No, because the average employee has both a lot more in common with their peers and because the gains are lower for people whose stock shares are orders of magnitude lower. Joe from accounting isn’t laying off a department so he can sell shares worth the price of a Corolla before taxes.
danw1979 4 hours ago|||
For the last 15 years I’ve been telling anyone who would listen about my idea for a John Lewis (British retail chain) model IT consultancy- employee owned, everyone is motivated, high quality, etc.

Except last month I met someone who worked there and got TUPE (involuntary contractual transfer of employment) to Wipro (Indian outsourcerer) a few years ago.

So even though this corporation is owned by the employees, and is one of the best examples of this in the UK, it seems you also need some kind of management structure that is also immune to the usual senior leadership trolls to avoid it turning out to be shitty.

asdfsa32 6 hours ago|||
Have you look at how efficient your local government is?
Kadecgos 6 hours ago|||
Yeah - the answer is that the cost to deliver a service from my local government is a lot cheaper than it is when it's coming from the private sector.

People meme on 'lol government efficiency', but actually sit down and calculate your marginal cost for the services you pay for that are funded by taxation. It's not even close - the cost to operate these services per person is crazy low.

In fact, you don't even have to look that far for government-adjacent programs. Co-ops for utilities are notoriously cheaper for their service area than a private utility, almost without exception.

So yeah - the government is not perfectly efficient. It's not going to give you exactly what you want all the time, but it's still 2-3x more efficient than the private sector when it comes to actually absorbing the costs as a citizen or user of a service. "Lol government efficiency" is not the burn you think it is.

asdfsa32 3 hours ago|||
You're making it sound like I am not already paying taxes for those "absorbing of costs".
fc417fc802 4 hours ago|||
The flip side is that sometimes things go poorly and the (lack of financial) incentives are such that costs might not get reined in for a long while.
ethanwillis 6 hours ago|||
When local governments are captured by corporate interests this isn't the argument you think it is.
asdfsa32 3 hours ago||
"captured by corporate" is a feature. It is either Corporate or the Vanguard. We are almost agreeing.
Scroll_Swe 3 hours ago|||
No, this never works... The socialism glaze on HN amazes me...

I am Swedish, in Sweden, and we are a market economy combined with unions. Companies can do layoffs but for a 3month agreement, they have to notify basically, WARN.

tjpnz 6 hours ago|||
You'll also be less exposed in privately owned companies.
simianwords 6 hours ago||
these corporations would never work because they would optimise for the wrong thing - they would get their face eaten by other more efficient and ruthless corporations
dgb23 46 minutes ago||
These corporations exist and do work. Worker owned companies have their own challenges and their own advantages.

For example they tend to be more stable during crisis, because workers tend to vote for lowering salaries/benefits temporarily rather than doing layoffs. So they retain talent better. But they also tend to have difficulty to grow quickly, for obvious reasons.

Besides full on coops, there are also plenty of examples that are hybrids (partially worker owned).

> they would get their face eaten by other more efficient and ruthless corporations

You're possibly of assuming that a company needs to have an adversarial relationship to their workers in order to be competitive. I don't think that's generally true. This approach has advantages in specific situations, but disadvantages in others.

simianwords 43 minutes ago||
Im literally saying the opposite that no adversarial relationship needs to exist.

That’s exactly why you don’t need worker owned companies

absolutewinner 7 hours ago||
The other thing is that the laid off employees will lose all their unvested RSUs. These shares were granted as compensation for past performance but they can now be conveniently clawed back by the company just because they decide to lay you off. Stock can be a large part of someone's compensation in a tech company. Companies shouldn't be allowed to benefit this way if they decide to lay off employees.
boguscoder 7 hours ago||
Alas this happens in all FAANG layoffs too, some lucky people get to received one more vest but nothing close to all unvested RSUs
fc417fc802 4 hours ago||
How is that legal? I thought the entire point of delayed vesting was to disincentivize jumping ship. If they're the ones throwing you overboard clawing back RSUs seems like a roundabout form of wage theft.
cheevly 7 hours ago||
False
mtucker502 7 hours ago||
What particular point do you find false?
holysoles 8 hours ago||
Almost bought cisco shares today, glad I didn't.

A workplace that values job security is such a motivating factor for employees that I don't think is recognized enough. At a company that conducts layoffs, it feels like you're just waiting for the next one.

otterley 7 hours ago||
If you had, your investment would be up 20% now. https://www.nasdaq.com/market-activity/stocks/csco
siren2026 6 hours ago|||
To profit you also need to get out at the right time.

Right now everything seems so inflated. I don't believe this economy represents any of the underlying assets correctly anymore. I really think we are on the verge of one of the biggest bubbles in history.

Time will tell.

jjmarr 6 hours ago|||
Had OP immediately sold, they would've provided a price signal that layoffs are bad in addition to making money.
renticulous 6 hours ago||||
Someone commented on X. US markets are never going down again just like Weimar Republic stock markets never did.

Don't do the mistake of shorting Weimar Stock markets.

Barbing 6 hours ago||||
Anyone know a good article that lays out what the bubble pop might look like?
Rp8yXmdmr 2 hours ago|||
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bigstrat2003 6 hours ago|||
There are more important things than making money. I assume that the parent poster was glad to not buy into a company that doesn't treat their employees well.
unmole 6 hours ago|||
Why would an individual buy stocks other than to make money? Certainly not for charity. And if it's just virtue signalling, there are far cheaper ways to feel morally superior.
simianwords 6 hours ago|||
The companies in the stock market are not primarilay a jobs program. It is not the primary role for companies to pay their workers. Such a system would never work and would collapse.

Virtue signalling about "treating employees well" is shortermist and doesn't consider the higher order effects.

dilyevsky 6 hours ago|||
They buy a lot of companies then restructure them and that causes these layoffs. I think it’s just normal way of doing business for them. And the stock is up 20% after hours =)
el_jay 4 hours ago||
Who really cares about the lives of lim n —> 4k wagies? There is an opportunity to maximise shareowner returns here - failing to seize it would be little more than economic treason, a dereliction of our duty to be good capitalists. If those people wanted job stability, they should have worked harder to become indispensable to their employer. Frankly, they should have known better than to stake their livelihoods on unstable, declining industries like employment. Now, The Market Has Spoken, and only those let go are to blame for what it said - no one else.
declan_roberts 7 hours ago||
This type of thing should come along with a reduction of allowed H-1bs.
siren2026 6 hours ago||
Cisco especially is absolutely full of H1Bs.

As someone that has worked for them a decade ago, some of their division are >90% Indian. Those are all good engineers and not dunking on them at all but it should be unacceptable to bring over competing workers on a visa while also laying off so many people.

spike021 6 hours ago|||
we were acquired and part of our org moved into cisco HQ.

the entire floor were Indian other than our org, and over time our org was filled out with incoming transfers and new hires.

i'll never forget some irony in that one of the engineering leaders brought us together for a mini townhall once and praised our "diversity" but by then the percentage of people in the room were basically the same as you described, including said leader. even our twice a week catered lunches were almost always indian.

just an interesting experience being part of cisco for a couple of years.

shell0x 6 hours ago|||
Shocking. I had an interview for an Australian job with JP Morgan recently and even the interviewers were based in India. Super rude, could barely understand him due the strong accent, he couldn’t ask a single intelligent question and it was kinda clear that the org basically just hires other Indians. They always end up talking a lot while doing almost nothing and only hiring their friends and family while Chinese engineers just get stuff done. I’m sure there are exceptions but in my 15 years in tech I can count with two hands how many good Indian engineers I worked with.
truncate 4 hours ago|||
Or maybe you just aren't that good of an engineer (or whatever profession you are into) and find the easiest group to blame on your failures. I found that people who often are quick to judge and group of people in one bucket based on their color/ethnicity/gender/... are often not that bright people and like to focus on directing it on others. Somewhat like MAGA.
nixass 3 hours ago|||
> Somewhat like MAGA.

Wow this escalated quickly. What OP is saying is not anecdotal but true to every major US tech company. You can cope all you want, won't make a difference

Scroll_Swe 3 hours ago|||
Well, can you refute any of the points in the thread?

Indians hire only Indians.

We cannot understand them due to the accent.

Having worked with many of them, I am not impressed either. So maybe... you are not good either :)

Concrete examples, master student in networking could not ssh into a Cisco router, as in, did not know what ssh was (thread related)

On various company teams meetings internationally they are just warm chairs doing "project lead" until the USA & EU people join and actually start working on the problem.

They just say yes to everything, despite not understanding, then doing 0 work.

H1B should be limited. (and/or what it is called in EU)

t. 15 years experience

tdeck 59 minutes ago|||
> Indians hire only Indians.

I've worked for Indian managers several times and they all hired non-Indian people.

sometimes_all 3 hours ago||||
Way to paint with a really broad brush...
Scroll_Swe 3 hours ago||
I use my real life experience to form my opinions, yes.
sometimes_all 3 hours ago|||
I'm sure you do. But your real life experience is not everyone else's real life experience, so there's no really need to make blanket statements about people.
Scroll_Swe 3 hours ago||
Blanket statement - western europe is where people want to live

Wrong?

Ok good, don't come here then.

sometimes_all 2 hours ago||
Oh wow, you went from one place to some totally different place at the drop of a hat. Where did me "coming" to Western Europe come into the discussion about racial stereotyping about Indians? I'm not in Western Europe, and I don't plan to live there, not sure how you got that impression.

I think there's no reasoning with someone who only wants to deal in absolutes. Have a good day.

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i67vw3 4 hours ago||||
The reason is basically that you are "required" to hire other "Indians".

If you get a job at a good company on your own merit, you immediately start getting calls to "refer" your college friends, family, people from your region/state.

Refer here means refer it to HR and make some "setting" that you are guranteed to be hired based on your "reference". Naturally reference would mean that considering you are an employee you would know about open positions and may refer the position to your friend, who would later on get the job on his own merit considering that he is skilled for the position along with required experience.

But the case for Indian employees is that a reference entails to scam the company itself, by letting a less skilled person into the company by making a "setting" with HR etc, who may themselves be from the same region/state.

And if you try to be morally upright person to deny such a scammy "reference", you would then get to listen verbal abuses from your friends and even from your own family members. To deny such a reference leads to straight up "banishment".

Tip:- Among 100 Indians if you see, only 1 or 2 are actually good at their job (or by morality).

cumshitpiss 4 hours ago||
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mavelikara 4 hours ago||||
Polydactyly can be treated surgically! /s

Jokes aside, if in 15 years you have worked with only few good Indian engineers, you probably have not yet worked at places with high talent density. I could understand if you had said you have (a) worked with many low quality engineers from India, or (b) worked with far more low quality engineers from India than high quality ones. But if, in absolute numbers, you haven't come across many good engineers from India, I can only infer than you probably haven't worked with very good engineers across the board.

keithxm23 4 hours ago|||
Gotta love the covert racism here.
boelboel 3 hours ago|||
Where's the covert it's open racism
ponector 2 hours ago||||
The best thing in such companies like Cisco is discrimination by caste within Indian workers.
jakeydus 4 hours ago|||
Yes what the fuck is this entire thread
Scroll_Swe 3 hours ago||
The truth.
hirako2000 5 hours ago||||
Diversity is the term to disguise cheaper labor. Call it women, ethnic minorities, trans, neuro divergent, on wheelchair, or those having criminal records.

It's a brilliant slogan, not just because virtue signalling, but because it spawns cross cultural factions, all selfishly united to defend it. At no further brainwashing cost to you.

You dare to attack it? You are out. Pack your stuff, and your shame.

Consolation? It would at least provide opportunities to those who always suffered injustice. Yet many who claim their right to a seat don't bother with competence.

It works, because the goal isn't more talents, we never lacked them: it's to pressure the overall labor cost.

danw1979 5 hours ago|||
I can think of at least one fairly large “cultural faction” in the US that doesn’t like DEI
hirako2000 4 hours ago||
One faction, whether we adhere to its other political views or not, hating DEI doesn't disprove the mechanism. The other factions still defend it selfishly. That's exactly why it holds.
intended 4 hours ago||||
Maybe America should export US labour and safety standards.

Outsourcers don’t just compete on price, they compete on hours worked, and support given.

You do it in outsourcing contracts to a degree, just go further - holidays available, work hours, firing procedures, support and health services.

I do know that FDA inspectors travel to factories around the world to ensure they are compliant.

You’d remove the incentive to undercharge based on sweat shop practices, and then it’s only a cost of living arbitrage.

At that point you could set up in a lower CoL region in America over outsourcing.

I’m probably missing some incentives but I think this would work, and it’s an easy political sell.

simonra 3 hours ago|||
Please don't export US labour and safety standards. The amount of paid time off is hard to argue is not unethical, the conflation of vacation time and sick time clearly is unethical, the amount of parental leave (especially maternity) is a crime against humanity. The firing procedures are also something you'd expect to read about in a history book besides a picture of a child visibly yearning for the coal mines, contracts with a mutual resignation period giving both parties adequate time to transition is a bare minimum. And that is just the tip of the iceberg. Please please America spend serious efforts developing your labour standards to a humane level instead of exporting them.
intended 2 hours ago||
Ah yes. Missed that part.

Factory Safety standards I would make an argument for, you should see some of the things I see in developed nations.

> Please please America spend serious efforts developing your labour standards to a humane level instead of exporting them.

This is possibly the critical weakness in the idea. Maybe EU labour standards?

hirako2000 3 hours ago||||
Abolishing restricted borders, collectively would push the logic to its final destination. Such sweat shops exist because humans are confined.

Cross border inspectors is mostly PR theater. Even if it was feasible, local verticals spill into others, so it would always be lower costs in less developed/regulated nations.

suddenlybananas 3 hours ago|||
That's essentially colonialism. You can't go into other countries and change their labour laws, it's a violation of their sovereignty. Obviously there's a huge problem with uneven development across the world that makes outsourcing possible and difficult for workers in the developed world, but I'm not sure such a solution would be politically feasible.
intended 2 hours ago||
Eh? That’s such a stretched definition of colonialism that it ceases to have meaning.

Firstly, This is how things are being done now - post colonialism. America has many laws and drives to avoid labour from sweatshops. This was a whole thing, it may not have been the most effective, but it was a political force that drove change.

Foxconn factories having workers commit suicide and place safety nets around buildings was a huge issue for Apple, and it resulted in changes to working conditions.

And as I mentioned before, the FDA inspects factories around the world to ensure that something sold within America that has the FDA approved label actually meets standards.

The idea is feasible I just don’t know how effective it will be. Political will can be found in America, and this affects only foreign outsourcing while supporting American workers. You don’t need political will in other nations.

On top of that, it moves competition away from a race to the bottom, which reinforces worker rights. If worker rights in India and America are at parity, then the attractiveness to move to America changes as well. America will remain attractive because of standard of living.

It’s an issue for outsourcing, and firms that buy outsourced services, but not that much of an issue.

One issue is that worker rights in America are kind of a low bar.

suddenlybananas 39 minutes ago||
>You don’t need political will in other nations.

Yes you do if you want to change their labour laws.

intended 4 minutes ago||
> Yes you do if you want to change their labour laws.

You aren't changing the labour laws in their nations.

If firms want to trade with American firms, then they have to have certain work norms that they abide by in their contracts/.

anal_reactor 4 hours ago||||
This is so obvious now that you point it out I'm embarrassed not to have noticed it.

By the way, I was wondering if learning Hindi would be the winning strategy here. Be the only white guy speaking Hindi, instant hire.

hirako2000 4 hours ago|||
Don't be embarrassed. Most don't see it, because the moral framing blocks economic analysis.

As for learning Hindi, it may help. But don't make the mistake of confusing cultural diversity with competence uniqueness. One expands the number or silos in the labor pool. The other justifies better pay.

anal_reactor 3 hours ago||
My thinking was, the goal of "diversity" is to have people reject their cultural backgrounds and form a shapeless blob that absorbs commands more easily and resists less. Basically "divide and conquer" applied to workplace.
hirako2000 3 hours ago||
Dividing implies having to preserve, if not reinforce differences.

Of course those difference aren't meant to object the dominant force. They are meant to counter act each others.

I see more push for integration than assimilation in the workplace.

pixelatedindex 4 hours ago||||
lol that depends. If they are mostly from South India, learning Hindi might not move the needle as much. Might want to pick up some Kannada, Telugu and/or Tamil. Would be pretty cool for trying, and it’ll probably make your outlook favorable
Conscat 3 hours ago|||
In the bay area, I've met relatively few NRIs who don't know Hindi well, even if it's not their first language. Most of them that I've met are not even Kannadiga, Mallu, Telugu, or especially not Tamil. Sample size of at least several dozen.
hirako2000 4 hours ago|||
The irony is ethnic Indians in the U.S barely speak any of those.
Conscat 3 hours ago||||
Studying Hindi has felt very rewarding to me, and it impresses people disproportionately to my actual skill, but I don't feel it has affected my ability to communicate with coworkers whatsoever.
dinkumthinkum 2 hours ago|||
No. Very large numbers of Indians, particularly ones in the US do not even really speak Hindi or use it much. It is more common for them to speak their local languages and good luck learning all of those. Also, the culture is such that I think they would just have a good laugh as they click delete on your resume or whatever.
riedel 4 hours ago|||
The way you can phrase it: you may jsut get people that are happy to do a good job for the pay they get. In many areas your typical white/cis/hetero/neurotypical male is not present, because you cannot get the maximum reward for their well-trained ego. I think diversity/pay is pretty munch confounded for plausible reasons.
hirako2000 4 hours ago||
That's saying the white/cis/hetero male is absent because ego demands more reward. Exactly. Diversity fills that gap at lower cost. That's my point, or a counter?

The scheme's motive is the overall effect. Lower wages. It doesn't care about white hetero, or black trans who happen to participate in paralympics.

carabiner 4 hours ago||||
I was a contractor at Cisco as the only non-indian in my group. But, I think the entire floor (100+ people) was Indian except for me. I'd always heard of "toxic work environments" but was pretty dismissive, until working at Cisco. I never knew people could bring high school bullying, manipulation into a supposed professional workplace.
cumshitpiss 4 hours ago||||
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heggerd 5 hours ago|||
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truncate 6 hours ago||||
What percent of laid of employees do you think are H1Bs?
z0mghii 6 hours ago|||
0
vkou 5 hours ago||
Do you have anything but prejudice to support that, or..?
bakugo 4 hours ago||
When tech companies lay off large amounts of workers like this, they often immediately replace them with H1Bs. These layoffs are almost always cost-cutting measures, not caused by lack of work - the work is still there and still has to be done, they just don't want to pay expensive white people to do it.

https://www.newsweek.com/microsoft-layoffs-h1b-visa-applicat...

It makes no sense to lay off H1Bs only to immediately re-hire them afterwards.

ribosometronome 5 hours ago||||
If a company is set on hiring foreign workers who will work for less than Americans and we don't let them bring them over here, won't they just offshore instead? I don't ask this to be contrarian but more to wonder how to combat it.
fc417fc802 5 hours ago|||
By penalizing offshoring. I don't say this as a particularly nationalistic person either. All companies in all countries should be heavily incentivized to hire local labor and sell to the local market. Globalization is extremely beneficial of course but the various side effects need to be managed.
SpicyLemonZest 5 hours ago|||
An offshored worker is already much cheaper than an H1B worker, I would expect any easy substitutions along those lines to already be performed. Probably some effect on the margins, but I would doubt it outweighs the primary effect.

(Of course, it would be a problem if you think H1Bs are for hiring people who cannot be found domestically, but it does not seem like many people think that these days.)

rayiner 5 hours ago||||
Do you think there was ethnic favoritism going on?
mavelikara 5 hours ago|||
> This type of thing should come along with a reduction of allowed H-1bs.

H-1Bs also lose jobs in these layoffs, so there is an implicit reduction.

jimbob45 7 hours ago|||
I’d prefer a forced resignation of the CEO and board with no severance.
jameson 5 hours ago|||
Unlikely to happen when H1B program benefit corporate and they run super PACs

Any policies to help the people are labeled as "socialist" nowadays

csomar 7 hours ago|||
I think H1Bs are pretty much dead with the 100k fee.
AlexB138 5 hours ago|||
As I understand it, the fee doesn't apply in many situations and is fairly easy to work around. Apparently it was neutered immediately after being announced.
b3ing 6 hours ago|||
They are still getting jobs non stop
Scroll_Swe 3 hours ago||
This. Once Indians get in, they hire other Indians only. It is a disgrace. They are here in Sweden too studying for masters, terrible. They should be barred from EU honestly... sadly we just did a trade agreement...
gothicbluebird 5 hours ago||
one would think that those jobs identified as superfluous or dispensable are in administration more than in engineering. The lay-off procedure itself looks very bureaucratic and makes HR, lawyers, and managers indispensable. Cunning plan.
walrus01 7 hours ago||
5% reduction returns them to the headcount on what date? Something like mid 2022 if the info I'm finding is correct.
markus_zhang 7 hours ago|
OK looks like the horn has been blown. Now they are all doing layoffs. Wall Street waving its visible hand again?
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