Cisco (Nasdaq: CSCO) is refocusing on its core Internet-based technologies, tightening its employee base through "headcount reductions" and taking a closer look at "underperforming operations," Chairman-CEO John Chambers said during an extensive fiscal third quarter 2011 earnings call with analysts.
While noting that some business operations have to go--and continuing to throttle a consumer-facing part of its focus--Chambers gave a vote of confidence to what he called the "service provider video" business which, he said, "will remain network-centric and will continue to include connected devices such as next-generation set-top boxes."
In addition to reducing headcount, with steps communicated to employees by the end of summer, Cisco sliced the number of intra-company councils and boards that management uses to oversee operational segments.
"We are moving quickly and we'll continue to implement our action plans to fix what is broken and solidify our foundation for the future," Chambers said in his prepared remarks.
As expected, Cisco came up short on its earnings in the period. Net income fell to $1.8 billion from $2.2 billion a year ago even though revenue was up to $10.9 billion from $10.4 billion last year.
- see the earnings release
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