“It was our choice to move early and boldly with incredible speed to realign 40% of our employees to priority areas. To be organized from product groups and to integrated solution teams, to replace more than 30% of our leaders.” – John Chambers

RESEARCH TRIANGLE PARK, N.C. – How many companies can “replace” nearly a third of its leaders and stay in business, let along rebound? Cisco (Nasdaq: CSCO) did it. And John Chambers is downright proud.

But if you are one of those managers given the boot in the rear, how do you feel?

Plus, if you were one of the hundreds of employees laid off at Cisco in RTP last fall (a 5 percent cut), you might be glad to know that your former boss is proudly taking credit for showing you the door.

After a rough year, Chambers was back in his bombastic, evangelistic war mood Wednesday after the network giant’s latest financials. And many of the victims were Cisco’s own managers. (Earnings analysis: Cisco blends new, old for good quarter)

“More than 30 percent of our leaders” were replaced in a recent reorganization – bloodbath? – he boasted.

And 40 percent of all Cisco workers go through a “realign.”

Business Insider described Chambers as “absolutely ebullient,” citing another Chambers qoute: “I’ve never felt better about our business and future. We’re back.” Chambers also dissed VMware and its parent EMC – both are partners, now rivals – and downplayed threats from rivals such as a new offering coming from Facebook.  That’s Chambers.

Recent Cisco coverage in WRAL TechWire:

  • Analyst offers thumb’s up on latest earnings
  • John Chambers expresses regrets about cuts
  • John Chambers takes a big cut in pay
  • Cisco’s COO laments big layoff strategy

In October, he described the reorganization and layoffs as his “hardest decision.” In 2013, he called cuts “the most painful decision.” (It should be noted, Chambers took a cut in pay – 22 percent for a bad year.)

No tears or regrets on Wednesday evening. 

“It Was Our Choice …”

In his opening statement for a conference call to discuss Cisco’s quarter as quoted in a transcript by financial news website SeekingAlpha, Chambers noted:

“Our strategy has always been based on understanding the direction of major market transitions, transforming ourselves to meet the needs of our customers and demonstrating the courage to disrupt not just the markets but even our self.

“The market is moving fast and change is exponential. We are in the strong position today we are today because we made dramatic moves in how we are innovating, how we are interfacing with our most important customers and how we are organized to ensure Cisco is leading where the market is going.

“Most companies resist changing until it’s too late and their market credibility is eroded, the classic innovators dilemma.

“It was our choice to move early and boldly with incredible speed to realign 40% of our employees to priority areas. To be organized from product groups and to integrated solution teams, to replace more than 30% of our leaders.

“We are seeing the results and our relevancy with our customers and our operational excellence and that is driving our financial performance.”

He went on to tout Cisco’s improving financials and, of course, the “Internet of Things” which Chambers sees as a multi-trillion-dollar opportunity.

And what company is better to exploit that than Cisco?

“Today, as every company becomes to digital, every CEO knows he or she needs to evolve their organization to move with speed, agility and efficiency. The Internet of Everything will demand of them.

“Our strategy is to be the model in how we have reorganized and the customers we are driving as a result. And we have done the heavy lifting with our peers and customers are just starting.”

A Different Kind of Boss

Reorganizations and layoffs simply must take place at times in all companies if they are to survive. That’s business.

However, some managers have an absolute tin ear when they talk about corporate bloodletting. 

Shareholders and financial analysts can gloat since they stand to make more money. But shouldn’t managers be at least sympathetic and careful in what they say about the disruptions that have ruined – at least for the short term – a lot of people’s careers?

Many companies say little or nothing and move on.

Chambers, on the other hand, is a different kind of boss. His record his clear. He’s an innovator, a leader, an incredible success.

But as much as people respect and love the guy, and as much leadership and philanthropy he provides, someone needs to say:

“Mr. Chambers, I humbly suggest that you tone down your remarks a bit.”

(The full transcript can be read online at: http://seekingalpha.com/article/2909326-cisco-systems-csco-ceo-john-chambers-on-q2-2015-results-earnings-call-transcript?find=realign&all=false)