Cisco Must Restructure, CEO Chambers Says in Keynote

By CIOinsight  |  Posted 07-13-2011 Print Email
Cisco CEO John Chambers acknowledged that the company urgently needs to restructure as part of his Cisco Live keynote in Las Vegas, where he also discussed corporate plans to focus on collaboration, virtualization and video.

While Cisco Systems continues to innovate, it has become too complex and needs to become more streamlined and easier to work with, CEO John Chambers said in his opening keynote at the Cisco Live show in Las Vegas.

As a result, Chambers acknowledged the company will undergo a restructuring, although he didn t disclose any specific plans for layoffs.

Cisco needs to focus on innovation so that it can remain a networking leader, execute faster and more simply, and have a leaner organization, Chambers, said in a 90-minute keynote presentation on July 12. The reorganization will consolidate multiple groups working on new products and streamline decision making, Chambers said.

Industry analysts have predicted that Cisco will reduce its headcount by at least 5,000, with about 1,000 employees departing under an early retirement program started early in 2011. The rest will come from layoffs coming after the start of Cisco's 2012 fiscal year on Aug. 1.

As part of the simplification process, Cisco will narrow its focus on five major priorities going forward, including its core networking business such as routing, switching and services, collaboration, data center virtualization and cloud, video, and business architecture that tie the various technologies together to work seamlessly, Chambers said.

"Intelligent networks will be the most strategic asset in IT," Chambers said. By focusing on the five main priorities, Cisco will drive the future of networking and change every industry around the world, he said.


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