To Understand Cisco's Mass Layoffs Look at the Company's Soaring Debt (Same at Microsoft)
Since last year (if not earlier) we've been showing that Microsoft is taking tens of billions in loans while sacking tens of thousands of workers. Cisco is very much the same, so whatever it claims about "revenues" or "profits" won't tell the full story. This thing does:
They need more money to pay salaries, buy companies, bribe officials etc.
So Cisco is running low on "cash" (it's not really cash; it's a misnomer and an accountants' euphemism that fakes fiscal health). It's also borrowing tons of money. Do the maths, as one sum cancels out the other, whereupon there's a big minus. Cisco is "in the red".
Companies do not voluntarily shrink. Remember that. Not voluntarily. Their size helps them project "worth", "might" and "safety" associated with buying their services/products.
Microsoft is the same, but that's another story. Cisco is not shrinking "for fun and profit"; it has no other choice as it's trying to survive. Look what's happening to Intel - down almost 60% since the start of the year, 57% to be precise. That's despite massive bailouts from the US taxpayers - same thing Microsoft has been receiving for years. What sort of economic system is this, wherein some people live in tents and Microsoft gets billions as gift money from the taxpayers under the guise of "COVID-19 relief"? █