Cisco has announced an internal reorganisation as part of a strategic retrenchment around core product lines led by chief executive John Chambers.
The alterations, announced on Thursday, will see the company simplify its internal governance council to three core councils, specialising in enterprise, service provider and emerging markets; create a dedicated emerging business group within its engineering department and organise sales around three geographic regions across the world.
"It's time to simplify the way we execute our strategy, and today's announcement is a key step forward," Chambers said in a statement on Thursday. "Cisco has driven trasnformational change before, and we are again transitioning to the next stage of the company's evolution."
These changes are part of a broader shift for the company which Chambers announced in a memo to employees in early April. Overall, Chambers wants the company to focus more on five core areas — routing, switching and services; collaboration; datacentre virtualisation and cloud; video; and architectures for business transformation — and less on fringe products.
Already, Cisco has shuttered its Flip video camera business and merged the consumer videoconferencing Umi product into its business telepresence division.
"Cisco is focused on making a series of changes throughout the next quarter and as we enter the new fiscal year that will make it easier to work for and with Cisco, as we focus our portfolio, simplify operations and manage expenses," Gary Moore, the company's chief operations officer said in a statement.
The changes are expected to be implemented in the next 120 days, according to Cisco.