Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
It seems like it was just yesterday when CSCO announced it would fire 10,000 people. And then another 1,300. And then another 500. Fast forward to today when the "one-time, non-recurring" termination charges are back, as the "recovery", now in its 5th year, progresses a little differently than expected, this time with another 4,000 FTE told to pack their bags.
- CISCO TO CUT 4,000 JOBS OR 5% OF WORKFORCE
- CISCO SAYS IT REMAINS 'VERY MUCH A COMPANY ON THE OFFENSIVE'
Nobody can blame the company, however: why keep full-time workers, when switching over to part-timers will do just as fine, and generate significant benefits to the bottom line and shareholders.
Yet all of this begs the question: If CSCO keeps firing 5-10K people every year, when do "one-time" termination charges become a recurring cost of business. Of course, we would expect the excuses to start in 3..2..1.. and for CSCO to be demoted to non-bellwether (remember, as Cramer said "this earnings season is all about Facebook.")
