Electronics Production |
Cisco heading out of Flip business
As part of the company's plan to align its operations, Cisco will exit Flip business, which will result in the reduction of 550 staff in fiscal 4Q/2011.
"We are making key, targeted moves as we align operations in support of our network-centric platform strategy," said John Chambers, Cisco chairman and CEO. "As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network's ability to deliver on those offerings."
In connection with the changes to the consumer business, it is anticipated that Cisco will recognize restructuring charges to its GAAP financial results, with an aggregate pre-tax impact not expected to exceed USD 300 million during the third and fourth quarters of fiscal 2011.
Additionally, the company expects this will result in a reduction of approximately 550 employees in the fourth quarter of fiscal 2011.
