said it will close down its Flip video camera business and cut 550 jobs
as it attempts to boost its faltering stock by focusing on a smaller
number of business priorities.
The company announced the moves just weeks after CEO
operations and would make difficult but “targeted” decisions to get
back on the right path. Many analysts had been expecting the changes
would affect
largest tech companies and has more than 70,000 employees. It is
profitable overall, but has seen its stock price flounder at two-year
lows after recent earnings reports and forecasts were lower than
expected. The company dominates the market for computer networking
gear, such as routers and switches, but in recent years has expanded
into numerous other businesses, leading some critics to say it has lost
focus.
also said it will move its home videoconferencing system into the unit
that sells similar and higher-end systems for business. The company
said it is examining other business elements, including its home router
products.
“We are making key targeted moves as we align
operations in support of our network-centric platform strategy,”
Chambers said in a statement Tuesday.
selling Flip digital cameras, which have been praised for their simple
design and ease of use, after buying camera maker Pure Digital for
did not indicate that it will try to sell the business; instead the
company said it will “close down” the business and support current Flip
customers with a “transition plan.”
One investment analyst,
called the moves “a step in the right direction” but noted that they
may not have a major impact on the company’s finances as a whole.
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