Oh, they absolutely do need people to build it. Just not US employees - at least not citizens and permanent residents. Look for them to apply for more H1B visas and overseas (because "they can't find local talent here").
It'll be just the same with Microsoft's and Broadcom's recent layoffs.
I get your feeling but the East tends to follow the West, and this is an early lead from the West, since IoT just beginning. In other words, the East sees little personnel investment by the West, this early, they would also be cautious. Direct to overseas is for mature, developed tech. Maybe that's what IoT and IoE are.
Cisco is doing the same as most large companies. Layoff the older workers and replace them with younger or foreign workers. Saves money for the bottom line to pay the CEO and they never get in trouble for age discrimination.
Spot on, Daleste! If anyone complains about CEO's huge salaries compared to the workers, someone will say "Yeah, but if you halved it, that money would only be $ 20 per year per worker". Yes, but the reverse is also true. All a CEO has to do to justify his obscene salary is to lay off a few workers, or knock their pay, or say he can't afford to give them a raise.
I don't know what the solution is....tax high salaries at a super-high rate....make companies confirm to a bell curve of salary distribution....limit the differential between the lowest and highest paid workers in a company (include contractors so the CEOs can't snivel out)....etc.
Personally I favour if a CEO gets more than a certain amount (lets say more than the President of the US) he is put in the stocks so people can throw rotten tomatoes and eggs at him. I think that would work.... :-)
"I don't know what the solution is....tax high salaries at a super-high rate....make companies confirm to a bell curve of salary distribution....limit the differential between the lowest and highest paid workers in a company (include contractors so the CEOs can't snivel out)....etc."
David, I think that CEOs aren't good at their job, that is why they have to cut the workforce short. Firstly, they look authoritative, but I think they have no idea what they are doing. Microsoft recently laid off 16000 workers from the Nokia merger, and my question was why did Microsoft buy Nokia if it was going to lay off so many workers?
@Anand....yeah you have to wonder about these guys. Especially when you read about Hewlett Packard in the good old days of Bill and Dave...not one layoff when they were in charge, and one of the greatest companies in the world.
Don't take me wrong, I think CEOs should make a lot of money. But when the company they are running is losing money and laying off workers, it should be reflected in their pay. I also think there is a lot of age discrimination that is not being addressed. Companies would rather have an inexperienced worker that will make a lot of mistakes just so they they can pay less. This is what happens when the CFO is making the business decisions.
All, I would just like to get a feel for what would be the american publics appetite for more governmental regulation here, somthing like what is there in europe ? I think there should be widespread support for such a measure but not sure if there is political will...Lastly I am not an expert here but would stronger labour laws and regulation really kill our industry , atleast i feel that is the general perception....on a more tangential point i cannot imagine why on earth companies like APPLE sitting on such large cash reserves allowed to continue in that maner, why cant they build a foxconn equivalet here and boost the manufacturing sector here...imagine if every semiconductor company did this...manufacturing may be alive and kicking...
@truekop - from what I know (and I am not sure I am on firm ground here) Europe has more socialist tendencies whereas in the US capitalism reigns supreme. As far as I know industry in Germany (all industry not just electronics) is doing OK?
In Australia we lean more towards the US than Europe, with similar disastrous results.....
Any European readers who know more about what they are talking about care to weigh in?
@truekop Okay, I'll bite. I'm not for it. I think we would lose our edge in general if we drifted more towards this socialistic, or more accurately fascistic (economically speaking), relationship between business and government. In this case, perhaps Cisco was a victim of their own success. Do they even have competitors in their core HW/SW market? So, a totally disruptive technology emerged and they got caught flat footed, had to react. It sucks but it does happen, and monstrosity companies seem to be especially susceptible.
Apple is "allowed" to sit on their piles of cash because it is theirs. They earned it and they can do with it whatever they'd like.
Capitalism worshipped all over the western world at its cruel best....It is high time we agree that workers from the east are willing to do our jobs at 1/3 the rate with the same level of competency...unless we go towards a economy with good deal of govt regulation i forsee these things happening unabashedly...we need stricter regulations on how layoff should be done...lastly cap CEO/VP salaries....So the million dollar question will the west now agree for tighter govt control on their beloved free market enterprise....
"Capitalism worshipped all over the western world at its cruel best....It is high time we agree that workers from the east are willing to do our jobs at 1/3 the rate with the same level of competency".
I'm with you truekop, and not just competency, people from the east have higher number of work hours. The median for western based workers is 8.35 hours where for the eastern hemisphere that is 8.90 hours. Also by eastern standards, workers are not given the equivalent amount of salaries which based on some analysts answers are due to "cost of living" which is high in the west.