Cisco Stops Flip Camcorder Sales Tuesday
Popular Flip Camcorder Calls It Quits
By PETER SVENSSON
The Associated Press
"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.
Cisco didn't explain why it's shutting down the Flip Video unit rather than selling it. But the decision is part of a larger shakeup at the world's largest maker of computer networking gear. After several quarters of disappointing results and challenges in its core business, it's reversing years of efforts at diversifying into consumer products.
A week ago, CEO John Chambers acknowledged criticism that the company has been spreading itself too thin. He sent employees a memo vowing to take "bold steps" to narrow the company's focus.
The shakeup announced by the
, company on Tuesday will result in the loss of 550 jobs, or less than 1 percent of its work force of about 73,000. San Jose, Calif.
Cisco 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.
The company is also retrenching on another consumer video business — home videoconferencing. In November, it started selling the umi, a $599 box that turns a high-definition TV into a big videophone. But signs soon emerged that the umi wasn't doing well. It cut the price of the unit in March, along with the monthly service fee, which went from $24.95 per month to $99 per year.