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Cisco Announces RestructuringPOSTED May 6, 2011 SAN JOSE -- Cisco announced significant changes to its business structure and operations this week. The company will streamline its sales, services and engineering organizations as it focuses on the five areas driving the growth of networks and the Internet: core – routing, switching, and services; collaboration; data center virtualization and cloud; video; and architectures for business transformation. These changes are in line with Cisco's mission to improve the customer, partner and employee experience; simplify its operating model and create greater focus on the five priority areas. No layoffs were announced but the company did say last month it was cutting back its consumer division and closing Flip Video camera business, resulting in 550 jobs lost. "Cisco has driven transformational change before, and we are again transitioning to the next stage of the company's evolution," said Cisco Chairman and CEO John Chambers. "Today, the market is driving toward simplification and it's why the network matters. Our role as the leading network platform provider is strong, we have great customers, talent and expertise—and we know how to bring innovation to every aspect of the network. It's time to simplify the way we execute our strategy, and today's announcement is a key step forward." The changes announced by Cisco include: - Worldwide Field Operations will now be organized into three geographic regions, to drive faster decision making with greater accountability and alignment. These regions include the Americas (U.S., Canada, and Latin America); Europe, Middle East and Africa; and Asia Pacific/Japan/Greater China. While the business will continue to be primarily managed by geographic regions, the organization will continue its focus on key customer segments and partners, with dedicated teams for Enterprise including large enterprise, public sector, commercial and small businesses, Service Provider, and Cisco Partners. Executive vice president Robert Lloyd will continue to lead the worldwide field operations and sales organization. - Cisco Services will organize around key customer segments and delivery models in alignment with Field Operations. Gary Moore, executive vice president and chief operating officer, will continue as leader of the services organization, in addition to his duties as COO. - Cisco Engineering will organize functionally to drive technology innovation, accountability and alignment across all five company priority areas. Senior vice president Pankaj Patel and senior vice president Padmasree Warrior will now co-lead the engineering organization. Within engineering, a dedicated Emerging Business Group will focus on select early-phase businesses and will be led by senior vice president Marthin De Beer, with continued focus on integrating the Medianet architecture for video across the company. The engineering organization under Patel and Warrior will continue to report to Gary Moore, COO. - Cisco will refine its cross-functional Council structure to three councils that reinforce consistent and globally-aligned customer focus and speed to market across major areas of the business: Enterprise, Service Provider and Emerging Countries. These councils will serve to further strengthen the connection between strategy and execution across functional groups. Resource allocation and profitability targets will move to the sales and engineering leadership teams which will have accountability and direct responsibility for business results. "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," said Gary Moore, COO. "Our five company priorities are for a reason—they are the five drivers of the future of the network, and they define what our customers know Cisco is uniquely able to provide for their business success. The new operating model will enable Cisco to execute on the significant market opportunities of the network and empower our sales, service and engineering organizations." © Copyright SVDaily.com |
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