Cisco is reportedly preparing to cut anywhere from 5,000 to 10,000 jobs by then end of August as it adjusts to the reality that it can’t command the prices it wants for its networking gear.
According to Bloomberg, Cisco is preparing to eliminate jobs by the end of August. Some of the cuts will be early retirement, but other layoffs will be involuntary. Reuters put the job cuts at about 5,000.
Cisco Live, the company’s customer event, kicks off Tuesday and Wednesday.
The reality is that Cisco has to adjust to cut costs for the long term because of fierce competition with the likes of Juniper Networks and HP. Both companies are squeezing Cisco’s core router and switch business.
via Cisco preps layoffs, aligns with competitive reality | ZDNet.
Forgetting for a minute the adverse selection and incentive problems from preferentially attracting folks who want to work in an environment without any accountability for performance, how can an institution that is running $1 trillion over budget not have any layoff either?
When a private company spends more than it earns, it needs to cut costs or go out of business. This means finding some way to streamline, save money, or reduce expenses, even if that includes letting people go.
But when a government spends more than it earns, it simply complains that any cuts to expenses are “draconian” or “extreme” or “unbearable” and demands that taxpayers just give it more money, regardless of how bloated, inefficient, worthless, or wasteful the government function and employees are.
Government: Welfare for worthless workers.