I don't think any past or present employees are surprised by this. Cisco has always been a volatile place to work (at least since the dot com bubble) where these layoff rumors start every 4-6 months; and more often than not they do occur.

This kind of uncertainty is unsettling to any employee (good and bad performers). It's prudent for existing employees to look for employment elsewhere since this uncertainty has been going on for over a decade now. If that means gaining additional skills, networking (no pun intended) etc. so be it.