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Cisco's choice to dump its Flip Video camera division rather than selling it is a little surprising. It could have retired the brand and sold the technology, but apparently the company deemed this too much effort, or concluded there wouldn't be any interested buyers. Flip Video was the gadget that jump-started the handheld video market a few years ago. The technology was, however, quickly matched by smartphones and other portable video-equipped products.
Cisco anticipates the there will be restructuring charges to its GAAP financial results, with an aggregate pre-tax impact of about $300 million during its fiscal Q3 2011 and Q4 2011. Additionally, the company expects this will result in a reduction of approximately 550 employees in the latter quarter. In October 2010, Cisco employed 70,714 individuals around the world, meaning that it is axing less than 1 percent of its work force. Still, our hearts go out to those affected.
"We are making key, targeted moves as we align operations in support of our network-centric platform strategy," John Chambers, Cisco chairman and CEO, said in a statement. "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."
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