When a company is driven by a few, protecting high salaries as their first priority, this outcome is always predictable.
IMO, broad salary gaps in any organization, will eventually lead to a tribal mentality amongst a select few.
@MHK_#1: since most of the VP's get paid more like $200,000+ (including benefits) and the news says 75% will be those, the numbers don't quite add up! There has to be a significant number of lower level employees in the $110,000 to $120,000 range (including benefits ~$153,000!).
With a little bit of math, 1B/6500 = ~$153,000. Therefore, Cisco will save this amount for this year. That is a dollar money Cisco will spend to have 1 employee about year, although $$$ can be varied title, location and hidden cost. I am curious how 6500 will be spread over US and world locations. In here, Cisco people may not be paid to get his salary. Most lay off people may be at Bay area or Southern CA where a salary amount is large. Does any one know or do they say anything like that?
I think Cisco is thinking about long-term; and that is understandable. But for employees to receive a voluntary early retirement package, and possess Cisco expereince, that is not a bad deal overall. But I understand.
The "15% layoffs will be vice presidents or above" comment is very dubious. If Cisco really has more than 975 VPs the company is way too top heavy and the CEO who let this happen deserves to be fired, not the individual workers.
I suppose that network switches and routers are more and more becoming a commodity product, and that's what often happens to companies that produce commodity products. It seems they're doing a booming business one day, and suddenly it goes flat.
Don't have any inside info, such as Superdude, so I have no idea whether clueless top management is a problem. (It often is.) It seems to me that with IPv6 now coming on stronger, Internet TV, and wireless broadband, there should be quite a few innovative products needed in Cisco's sphere, no? And innovative system solutions too?
One thing I do note is that Cisco-branded telephones have suddenly become THE ubiquitous telephone standard. Even in movies and TV shows. So, that's one innovative market segment they exploited nicely, I think?