Cisco's FY11 global workforce reduction appears to have specifically targeted the United States

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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

In 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

Only 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

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:

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