Morning Coffee Jul 19 2011

Cisco Shrinkage

By joseph walker

It's a sad day in Cisco-land.

The company announced that it would lay off 6,500 employees and sell off a manufacturing plant in Mexico with 5,000 workers. The last time the networking giant made cuts this large was 2001, when it cut 6,000 full-timers and 2,500 contractors. In all, the company's headcount is dropping 15.6%.

Rank-and-file employees must feel some amount of solace knowing that the cuts are being spread around. The layoffs will include many middle managers, the San Jose, Calif. company said in a press release; some 15% of all vice presidents and higher at the company are being let go. Cisco says the cuts will allow it to save $1 billion annually.

Some of the cuts will come voluntarily, with about 2,100 employees having opted for early retirement packages. The company says that it will spend up to $1.3 billion on severance packages. Spread out among the 6,500 affected workers, that averages out to $200,000 per pink slip.

Cisco employed 73,408 workers globally as of its most recent earnings statement, and 11,600 of those work in the company's San Jose headquarters, where it is the second-largest employer after the county government. (WSJ, San Jose Mercury News)

Go Game in Austin (Orlando Sentinel)

Video game maker Electronic Arts is opening up a studio in Austin, Texas for its sports games brand that will create 300 new jobs. The company is looking for software engineers, game designers and more.

Nasdaq CIO Dishes on Tech (FINS)

Nasdaq OMX Group Chief Information Officer Anna Ewing talks to FINS about the demand for tech talent in finance and New York City's growing tech scene.

The Money Man (Bloomberg)

Meet Michael Grimes, 44, co-head of tech banking at Morgan Stanley. He's connected all over Silicon Valley, from Kleiner Perkins to Greylock Partners, to Zynga and Groupon. And he just might be helping underwrite your company's IPO.

Microsoft Innovation (Cnet)

In some quarters, Microsoft has a reputation for being short on innovation. News of its "Garage" project might do something to combat that. The Garage is a building where the company's employees can work on side projects like an application that translates instant messages between two chat buddies who don't speak the same language.

Diversification (CNNMoney)

The technology industry isn't known for its racial diversity. Here are 8 entrepreneurs who are trying to change that.

IBM Stays Strong (WSJ)

IBM reported second quarter profits of $3.66 billion yesterday. The success of the hardware, software and IT services company suggests that businesses continue to spend on technology even if they aren't hiring.

Hiring Surge (San Jose Mercury News)

Silicon Valley firms say technology jobs will grow by 15% over the next two years, but can they find the talent they need to fill them?

Store Yourself In a New Job (FINS)

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Buzz Around the Office

Adorable Exhaustion (YouTube)

If this isn't the cutest thing you've seen all day, call 911 -- you're going through a cuteness overdose and you need immediate medical attention.

List of the Day: How to Revitalize Your Job

1. Acknowledge your problems at work.

2. Write an action plan for yourself, detailing how you will make a change.

3. Speak with your boss.

(Source: WSJ)

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