Cisco reveals streamlining plans

The networking giant looks to cut out the bureaucracy some believe has hampered the firm's progress.

John Chambers

Cisco has outlined its reorganisation plans following chief executive (CEO) John Chambers' calls for big changes at the networking firm.

The sales, services and engineering divisions of Cisco are all due for streamlining as the firm hopes to simplify its management structure and reduce bureaucracy.

Analysts had criticised the complicated structure of Cisco's business, saying it had led to troubles at the company.

"Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," Chambers said.

"It's time to simplify the way we execute our strategy, and today's announcement is a key step forward."

As part of the reorganisation, six of nine so-called "councils" Chambers introduced to ensure customer focus was consistent across the world will be cut.

Global field operations will now be reorganized into three geographic regions, including the Americas, Europe, the Middle East and Africa (EMEA) and Asia Pacific/Japan/Greater China.

As for personnel, notable changes have been made in the engineering division.

Senior vice president Pankaj Patel and senior vice president Padmasree Warrior will now co-lead of the engineering division.

Within that unit, an "emerging business group," to be led by senior vice president Marthin De Beer, has been established to focus on "early-phase businesses."

Last month, Cisco ditched its Flip camera business, which will result in a reported loss of more than 500 jobs.

This followed Chambers' calls for a rethink of the company's strategy, after disappointing quarterly results and increased competition from he likes of HP.

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