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Cisco to simplify operations structure

05-06-2011 08:20 BJT

SAN FRANCISCO, May 5 (Xinhua) -- Cisco Systems Inc. on Thursday said it will streamline its sales, services and engineering organizations, so as to focus on key growth areas and reduce management bureaucracy.

As part of the changes, the world's largest computer networking equipment maker said its worldwide field operations will be organized into three geographic regions and services operations will be organized around key customer segments.

In addition, Cisco's engineering operations will organize functionally, and will include a dedicated Emerging Business Group that focuses on select early-phase businesses.

The company also announced that its cross-functional council structure, which has been criticized as bureaucratic, will be trimmed to just three councils focusing on enterprise, service provider and emerging countries.

"Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," John Chambers, Cisco's chief executive officer (CEO), said in a statement.

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

Cisco said the majority of the new changes will take place over the next 120 days, with the new sales organization in place at the start of the company's next fiscal year on July 31.

The changes are seen as the latest moves by Cisco to restructure itself as it has tried to expand into many areas beyond its core business of routing and switching in recently years, leading to criticism that the company was losing its focus.

In April, Cisco CEO Chambers acknowledged that mistakes had been made in the company's operational execution, and warned that "tough decisions" would be made to preserve its profitability.

On April 12, Cisco announced that it is shutting down its Flip Video camcorder business to support its key priorities.

Editor:Du Xiaodan |Source: Xinhua

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