Networking technologies major Cisco will lay off its 550 employees as it embarks on restructuring of consumer business.
The entity will exit some of its consumer businesses and focus on key areas such as core routing, switching and services, collaboration, architectures and video.
“The company expects this [consumer business restructuring] will result in a reduction of approximately 550 employees in the fourth quarter of fiscal 2011,” Cisco said in a statement on Tuesday.
‘Flip' to be closed
As part of restructuring, it would close down Flip — the digital video camera company which was acquired in March 2009 — and also refocus on home networking business, among others.
When contacted, Cisco India spokesperson said it was still early to estimate the impact on Indian operations. The division was small in size here since the company focussed mostly on enterprise business here, the official added.
Cisco expects the restructuring to result in an aggregate pre-tax impact of about $300 million.
“We are making key, targeted moves as we align operations in support of our network-centric platform strategy,” Cisco Chairman and CEO John Chambers said.
