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Cisco to undergo major restructuring
By siliconindia
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Friday, 06 May 2011, 18:56 IST
Bangalore: Cisco has planned a major restructuring of the company following the loss suffered in its share market and to focus on some key departments to streamline sales, services and engineering.
The company has decided to dispense with most of the network of internal councils and associated boards. The engineering organization will be headed by Marthin De Beer. Earlier he was responsible for building up Cisco's Telepresence business and is also one of the executives on Cisco's group of people who was hugely responsible on company's acquisition projects.
Tony Bates, a Senior Vice President, who was responsible for Cisco's largest unit left the organization to become CEO of Skype Technologies SA in 2010.
In its major reorganization, the councils will be reduced to three from nine. Each will be led by two executives, rather than as many as five in the past.
This is an attempt to focus on spurring growth in network and Internet use. The company will look to lift the following key departments: Core routing and switching Collaboration, Cloud computing and data center virtualization, Architectures for business transformation and Video. This will improve customer, partner and employee interactions, simplifying its operating model and improve focus on the five priority areas.
According to IDC report, Cisco's share dropped to 55 percent in 2010 from 66 percent in 2006. Cisco lost m 10 percentage of share in network-security hardware. Cisco which is also in San Jose, California, declined 34 percent on the Nasdaq Stock Market in the past year.
The majority of changes will take place over the by July 31.
