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Doug's Mailbag: Was Cisco's Move Wrong?

Doug asks if his criticism of Cisco laying off workers to improve the bottom line borders communistic ideals or just common sense:

Neither one, Doug!

Gross margins don't tell you a lot. It might look like Cisco is dumping workers just to save money, but I think something worse is happening at Cisco. It seems to me that the 'new kid on the block' is Juniper when it comes to enterprise-class networking.

While Cisco has spent a lot of time and money in recent years upgrading its line of consumer products (following its acquisition of LinkSys) Cisco has let Juniper come into the enterprise marketplace with innovative new technology at very competitive prices. Cisco might very well find itself making a lot of money on the consumer end but watching those margins slip away as the competition for that space heats up. I don't think Cisco can live off the reputation of LinkSys forever if it allows itself to lose that lucrative enterprise business to Juniper.

I have no idea what you are. I don't think you're a commie (does anyone even use that term anymore?) but I don't think you are a common sense American either. I think you are just a journalist that will flip positions at the drop of a hat. Just a couple days ago you were suggesting that Microsoft was a good corporate citizen. In fact, I thought you were going to nominate them for sainthood or something. But today you're suggesting Microsoft is a scum sucking bottom feeder along with Cisco for the way they pummel their competition into oblivion and  kick their employees to the curb just to make an extra buck.

As far as I am concerned both of these companies have a lot to learn about being good corporate citizens, and since they both seem to care only about profits I would like nothing better than to see both their profits and stock prices nose drive. I don't want them to go belly up because that would just put more people out of work but let's see how they like it when their share holders start getting nervous and start throwing out the clowns that claim eliminating 5,000, 6,000 or 11,500 jobs is a 'good thing.' The douchebags that run these companies have their heads so far up their butts they are going to need a road map to get it out.

You're an idealist maybe?

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Posted by Doug Barney on 08/01/2011 at 1:18 PM


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