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Cisco to shutter Flip camera business

Editor's Note: The following article is reprinted from Network World.

Cisco reportedly plans to shutter its Flip videocam business in a restructuring of its consumer operations following a disappointing string of quarters.

Cisco CEO John Chambers last week promised bold moves at the company in an internal memo that Cisco publicized. The memo was a call to action for Cisco to narrow its priorities and accelerate decision making following consecutive quarters of disappointing revenue and profits in certain segments of its business, and companywide.

Cisco’s consumer business was off 15 percent in the company’s fiscal second quarter, and Flip sales were half of what the company expected.

Consumer chief Jonathan Kaplan, who joined Cisco after the company purchased Flip maker Pure Digital for close to $600 million in 2009, left the company following the second quarter results.

According to a report in Forbes, Cisco will realign its remaining consumer business to support four of its five key priorities—core routing, switching and services; collaboration; architectures and video.

Cisco anticipates revamping its consumer operations will result in the loss of 550 jobs and restructuring charges of no more than $300 million in its fiscal third and fourth quarters, according to Forbes.

Cisco did not respond to an e-mail inquiry by press time.