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Cisco's R&D employee headcount is the highest in history

Even though Cisco's R&D employee headcount is the highest ever, for the first time in a decade Cisco's R&D expense sequentially declined.

Hershey, PA: Wed, 9/12/12 - 11:03pm    View comments

Cisco R&D Employee HeadcountFrank CalderoniDuring Cisco's Q4'FY12 earnings conference call, Cisco CFO Frank Calderoni stated:

"Our headcount at the end of Q4 totaled 66,639. That was up approximately 1,416 quarter-over-quarter. The additions are strategic including approximately 500 new university graduates, who were hired in Q4 mostly in engineering to approximately 300 additional hires in R&D and growth areas such as data center and approximately 330 in services to fulfill customer contracts.

"From a geographic perspective, over half of the headcount added this past quarter were in emerging markets and other growth markets. We routinely review our business to determine where we need to align investments based on growth opportunities. Additionally, we continue to evaluate our organizational structure as part of our plan to drive simplicity, speed of decisions, as well as agility across Cisco. If we decide to exit or reduce investments in a business, we will have to make associated decisions that could impact our workforce."

Interestingly, even though Cisco's R&D employee headcount is the highest ever, for the first time in a decade Cisco's R&D expense sequentially declined.

18-Year Cisco Employee Headcount by line item on Cisco's Consolidated Statements of Operations:

Fiscal
Year
Cisco
Employee
Headcount
TOTAL
1
United
States
Rest
of
World
Cost
of
Sales
3
Research
and
Development
Sales
and
Marketing
General
and
Administrative
2012 66,639 36,052 30,587 14,125 21,568 24,507 6,439
2011 71,825 37,300 34,525 18,368 21,112 25,898 6,447
2010 70,700 38,350 32,350 18,250 21,250 24,600 6,600
2009 65,550 37,050 28,500 16,600 19,300 23,250 6,400
2008 66,129 37,429 28,700 16,794 19,584 23,529 6,222
2007 61,535 35,035 26,500 16,227 18,410 21,465 5,433
2006 49,926 30,326 19,600 13,126 15,288 17,322 4,190
2005 38,413 27,413 11,000  6,812 13,935 14,414 3,252
2004 34,000 24,400  9,600  6,000 12,000 13,000 3,000
2003 34,000 25,000  9,000  6,000 12,000 13,000 3,000
2002 36,000 26,000 10,000  6,000 13,000 14,000 3,000
2001 38,000 27,000 11,000  7,000 13,000 15,000 3,000
2000 34,000 25,000  9,000  6,000 11,000 14,000 3,000
1999 21,000 16,600  4,400  3,900  7,000  8,600 1,500
1998 15,000 12,000  3,000  3,000  4,500  6,300 1,200
1997 11,000  9,000  2,000  2,200  3,400  4,500   900
1996  8,782  7,382  1,400  2,147  2,420  3,387   828
19952  4,086      621    427  1,016  1,617   405

12012 thru 1996 TOTAL = Cost of Sales + Research and Development + Sales and Marketing + General and Administrative

21995 TOTAL = Rest of World + Cost of Sales + Research and Development + Sales and Marketing + General and Administrative

3 Cost of Sales - includes the Cisco employee headcount involved with manufacturing support, services and training.

   Source: Cisco Form 10-K Filings with the U.S. Securities and Exchange Commission.

View Cisco's R&D expense.
 


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