Cisco boss admits mistakes, projects to be pared
Chief executive says company will cut spending on projects in the wake of an internal memo admitting mistakes in business procedure.
Hot Topic
EARNINGS
Cisco Systems chief executive John Chambers has followed his mea culpa internal memo this week with an announcement that the company can no longer afford to invest in new business areas it has been working in, the Wall Street Journal reported.
This announcement follows several slow quarters, questions from investors about Cisco's competition and a memo to staff released this week from Mr Chambers which said the company had been slow to make decisions and had had surprises where it shouldn't.
"We have lost the accountability that has been a hallmark of our ability to execute consistently for our customers and our shareholders. That is unacceptable."
The memo went on to acknowledge that Cisco had disappointed its investors and confused its employees and that "tough decisions" would be made, but did not say what these decisions would be.
At an investor conference on Thursday, the Journal reported, Mr Chambers said that the markets were changing quickly and that at times, Cisco had not. The "tough decisions" would be made in regards to cutting off spending in new business areas Cisco was all ready involved in, the Journal said.
While the company did not say where the cuts would occur, the Journal reported that many believe it will be in the company's efforst to get back into consumer business.
Mr Chambers said the company would focus on its core switching and routing business, the Journal reported. Mr Chambers said routing remains a tough business, with more players in this field.
"It's going to be a good, competitive battle,"
NBR Staff
Fri, 08 Apr 2011
Fri, 08 Apr 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Cisco boss admits mistakes, projects to be pared
13727