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

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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

During 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 TOTAL¹	United States	Rest of World	Cost of Sales³	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