For the first time in history the Cisco overseas headcount now outnumbers the U.S. headcount

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For the first time in history the Cisco overseas headcount now outnumbers the U.S. headcount

Cisco CEO John Chambers appears to have achieved one of his major objectives; Cisco will no longer hire US workers.

Hummelstown, PA: Tue, 9/10/13 - 10:55pm View comments

7-months ago Business Insider's Julie Bort published the following story:

Cisco Won't Hire Any US Workers

"Tax policy will determine where our growth and head count will be.

"I'm a very loyal American citizen and company, but in terms of future growth, unless tax policy changes, you will see that occur outside the U.S. ... wherever we acquire is where our head count growth is going to be."

It was more than 2-years ago that Bloomberg exposed Chambers' hypocrisy:

Biggest Tax Avoiders Win $1 Trillion U.S. Tax Break

"Cisco Systems Inc. has cut its income taxes by $7 billion since 2005 by booking roughly half its worldwide profits at a subsidiary at the foot of the Swiss Alps that employs about 100 people."

However, it was during Cisco's FY13 that John Chambers appears to have finally succeeded at jumping the shark.

How so?

Well, for the first time in history the Cisco overseas headcount now outnumbers the U.S. headcount.

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

View the breakdown of Cisco employee overhead costs by line item

Fiscal Year	Cisco Employee Headcount TOTAL¹	United States	Rest of World	Cost of Sales³	Research and Development	Sales and Marketing	General and Administrative
2014	74,042	36,725	37,317	16,348	25,837	24,740	7,117
2013	75,049	37,275	37,774	16,349	26,416	24,938	7,346
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

¹2014 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 the video below made by former Cisco board director Carly Fiorina that slams Cisco CEO John Chambers for his success at outsourcing jobs overseas: