Wednesday, April 06, 2011

Cisco CEO Chambers Plans Changes to Fix Lost Credibility - Businessweek

More on the Cisco recalc

“We have disappointed our investors and we have confused our employees,” Chambers, 61, said in the memo. “Bottom line, we have lost some of the credibility that is foundational to Cisco’s success -- and we must earn it back.”

The changes may include selling or spinning off Cisco’s consumer business, Ehud Gelblum, an analyst at Morgan Stanley in New York, said in a report. That unit includes Pure Digital Technologies Inc., the maker of the Flip video camera.

The company also might move more marketing dollars and employees to its main routing, switching, data-center video and collaboration business, while decreasing the focus on side businesses, he said.

Cisco CEO Chambers Plans Changes to Fix Lost Credibility - Businessweek

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