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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Wowzer who wrote (3401)	4/16/2001 4:32:48 PM
From: Sharp_End_Of_Drill	Read Replies (2) \| Respond to of 23153

Cisco answers the inventory question: <<<``Personally, of all the difficult decisions we've had to make, the toughest was the reductions in headcount,'' said Chambers. Cisco expects to take a restructuring charge of approximately $800 million to $1.2 billion during the fiscal third quarter, associated with the restructuring of certain areas of Cisco's business. This charge comprises the following three components: Workforce reduction charge--Cisco is reducing its workforce by approximately 8500 people, which includes 2500 temporary and contract workers. Cisco expects to take a one-time charge of approximately $300 to 400 million this quarter related to this reduction in workforce. When the reduction in headcount is fully implemented, Cisco believes these actions will reduce its overall cost structure by approximately $1 billion on an annualized basis. Initial savings will begin during the fiscal fourth quarter of 2001. Consolidation of excess facilities and related fixed assets charge--Due to the workforce reduction and restructuring of certain businesses, Cisco expects to consolidate its workforce into designated facilities, resulting in an excess facilities charge of approximately $300 to $500 million. Asset impairment charge--The restructuring of certain businesses will also result in a charge relating to the impairment of assets, primarily goodwill, of approximately $200 to $300 million. Cisco also expects to take an additional excess inventory charge of approximately $2.5 billion during its fiscal third quarter. >>> They will be taking a wee $3.7 billion charge in the third quarter. Not sure, but this must rank in the top ten biggest quarter loses ever. Keep in mind - this is what happens to the guys that are going to survive. Think about what's going to happen to the many many who won't. Metal Trader - does this mean I win the bet??? Sharp Edit - on another topic, here's one JQP will appreciate: biz.yahoo.com