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Cisco's FY11 global workforce reduction appears to have specifically targeted the United States
Thu, 9/15/11 - 1:49pm    View comments

CiscoIn its Form 10-K (page 12) filed yesterday with the U.S. Securities and Exchange Commission, Cisco revealed that its FY11 global workforce reduction appeared to specifically target the United States.

How so?

Well in FY10, Cisco had 38,350 employees at locations in the United States. At the close of FY11, Cisco only had 37,300 employees at locations in the U.S., that's a net loss of -1,050.

Simultaneously, Cisco employees at locations outside the United States grew by +2,175 in FY11 over FY10.

17-Year Cisco Employee Headcount Chart:

Fiscal Year TOTAL* NonUSA MFG Engineers Sales Admin
2011 71,825 34,525 18,368 21,112 25,898 6,447
2010 70,700 32,350 18,250 21,250 24,600 6,600
2009 65,550 28,500 16,600 19,300 23,250 6,400
2008 66,129 28,700 16,794 19,584 23,529 6,222
2007 61,535 26,500 16,227 18,410 21,465 5,433
2006 49,926 19,600 13,126 15,288 17,322 4,190
2005 38,413 11,000  6,812 13,935 14,414 3,252
2004 34,000  9,600  6,000 12,000 13,000 3,000
2003 34,000  9,000  6,000 12,000 13,000 3,000
2002 36,000 10,000  6,000 13,000 14,000 3,000
2001 38,000 11,000  7,000 13,000 15,000 3,000
2000 34,000  9,000  6,000 11,000 14,000 3,000
1999 21,000  4,400  3,900  7,000  8,600 1,500
1998 15,000  3,000  3,000  4,500  6,300 1,200
1997 11,000  2,000  2,200  3,400  4,500   900
1996  8,782  1,400  2,147  2,420  3,387   828
1995**  4,086    621    427  1,016  1,617   405

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

*2011 thru 1996: MFG + Engineers + Sales + Admin = TOTAL

**1995: NonUSA + MFG + Engineers + Sales + Admin = TOTAL

Cisco CEO John ChambersOnly 10-months ago during Cisco's Q2'FY11 and without the slightest hint of embarrassment, care or even regard for his own outrageous hypocrisy (at least in my opinion), Cisco CEO John Chambers personally blogged:

"With the election season behind us, as a nation it's time we come together and quickly address the serious challenges facing the U.S. economy and American workers. Our number-one goal must be to restore confidence in our economy and put people back to work. As a U.S.-based multinational company, Cisco is committed to the continued economic growth and technological leadership of the United States. Our commitment to the U.S. economy and to the American worker is strong and we've made the investments to prove it. But more importantly, business and government must work together to put America back to work."

Chambers continued, "This country must have an environment where innovation and investment is encouraged and rewarded. Currently, however, U.S. tax policy does the opposite. Incremental tax rates as high as 35% on money made overseas discourages companies such as Cisco from bringing back these resources and investing them at home - whether to create new jobs, boost R&D spending, or return value to shareholders."

Cisco U.S. Job Search Results Dated 9/15/2011 at 12:35PM EST

Cisco U.S. Job Search Results

So let's look further at the following personal blog statement made by Cisco CEO John Chambers:

"This country must have an environment where innovation and investment is encouraged and rewarded. Currently, however, U.S. tax policy does the opposite. Incremental tax rates as high as 35% on money made overseas discourages companies such as Cisco from bringing back these resources and investing them at home - whether to create new jobs, boost R&D spending, or return value to shareholders."

Now let's compare the corporate tax rates of India vs. the United States:

Tax rates around the world
Tax rates around the world
Tax rates around the world

Furthermore, Wikipedia states the following about corporate tax rates in India:

"For companies, income is taxed at a flat rate of 30% for Indian companies, with a 5% surcharge applied on the tax paid by companies with gross turnover over Rs. 1 crore (10 million). Foreign companies pay 40%. An education cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 32.5% for domestic companies and 41.2% for foreign companies."

Amazingly, with an effective corporate tax rate of 41.2% for foreign companies in India, Cisco CEO John Chambers is on a hiring binge within that country:

Cisco India Job Search Results Dated 9/15/2011 at 12:41PM EST

Cisco India Job Search Results

In my personal opinion, John Chambers' outrageous hypocrisy is stupefying!

Related stories:

U.S. Senate investigative report refutes the job creation claims made by Cisco CEO John Chambers

CBS News seeks to interview laid off Cisco employees in San Jose

California law firm warns Cisco employees: Do not sign severance agreement

1,826 Cisco WebEx and collaboration employees guillotined by Tandberg executives

Cisco insight series: Expendable Cisco business units and employees

Discord between Cisco engineers and Cisco technical marketing appears rampant

Brian Schipper senior vice president of human resources bolts Cisco

Cisco's restructuring embeds operating committee, councils, boards and working groups deeper into Cisco's new management structure

Cisco's 2011 voluntary enhanced early retirement program (EER)
 


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