"1. Cisco overstaffed in anticipation of larger future growth that didn't materialize" Another angle to this is that they are not really that overstaffed and h

"1. Cisco overstaffed in anticipation of larger future growth that didn't materialize" Another angle to this is that they are not really that overstaffed and have the ability to lay off cisco employees and outsource the work. In essence shifting cost from one area to another. Without all the drawbacks of a full time employee. All at once so everyone can move forward. For example the person in job "x" being paid $x dollars is the not same as an outsourcing job "x" and paying the outsourcing company "$x" dollars. One cost is easier to get rid of (vs. laying off employees) and would be shown in financial statements in a different and possibly more advantageous place.