[speak] Thurman Speaks About Cisco Systems Reducing Its Workforce

Cisco Systems Inc. announced that it "may" reduce its workforce by 14%.

   date:  13 July 2011
   CSCO:  $15.78 (52-week range: $14.78 - $26.00; yield: 1.60%)
   market capitalization:  86.79B
   PSR: 2.0 (PE: 12.32)
   free cash flow:  $5.19B
   cash: $43.73B ($7.89 per share)
   debt: $15.75B (current ratio: 3.43)

Historical CSCO prices.

   26 March 1990  :  $ 0.08
   ..... ten year gap .....
   27 March 2000  :  $82.00  [all-time high]
   .... nine month gap ....
   02 January 2001:  $33.07  [start of 21st century]
   04 January 2001:  $44.50  [21st century high]
   .... 10.5 year gap .....
   13 July 2011   :  $15.78

The Internet has been operating non-stop for the entire duration of the 21st century (i.e. 13 July 2011 was day 3845 of the 21st century). During the first 3845 days of the 21st century, the number of "bits" (binary digits) that "passed through" Cisco Systems equipment had to have been a huge number. Yet, thus far in the 21 century the value of CSCO shares have decreased 52.3%.

Cisco Systems has too many employees and a workforce reduction seems appropriate.

Updated::2011.07.19

Newsroom.Cisco.com::Cisco Announces Additional Detail on Comprehensive Action Plan

   "As part of the company's $1 billion annual operating expense 
    reduction, Cisco will reduce its global workforce across all 
    functions by approximately 6,500 employees, which includes 
    approximately 2,100 employees who elected to participate in 
    a voluntary early retirement program."

Creator: Gerald Thurman [gthurman@gmail.com]
Created: 13 July 2011
Last Modified: Saturday, 05-Jan-2013 11:15:48 MST