![]() ![]() The company is also retrenching on another consumer video business home videoconferencing. The shakeup announced by the San Jose, Calif., company on Tuesday will result in the loss of 550 jobs, or less than 1 percent of its work force of about 73,000.Ĭisco expects to take restructuring charges of no more than $300 million spread out over the current quarter, which ends April 25, and the following one. He sent employees a memo vowing to take "bold steps" to narrow the company's focus. After several quarters of disappointing results and challenges in its core business, it's reversing years of efforts at diversifying into consumer products.Ī week ago, CEO John Chambers acknowledged criticism that the company has been spreading itself too thin. But the decision is part of a larger shakeup at the world's largest maker of computer networking gear. "It was a brand the company had invested heavily in and could have leveraged for all kinds of consumer video experiences video conferencing, security applications, et cetera," Rubin said.Ĭisco didn't explain why it's shutting down the Flip Video unit rather than selling it. "The camcorders, for example, never even had Wi-Fi built into them." "There were many opportunities for Cisco to integrate Flip more into its vision of a networked world," said Ross Rubin, an electronics industry analyst at NPD Group.
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