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article imageCisco CEO admits company has lost some credibility

By Owen Weldon     Apr 7, 2011 in Business
The CEO of Cisco, John Chambers, admits that his company has disappointed investors, as well as leaving their employees confused.
John Chambers admitted that his company let down investors earlier this week. Chambers was addressing Cisco's weak performance recently, Chambers did say that he promises that big changes are coming in the future.
Chambers pointed out that Cisco lost some credibility that was crucial to its success, according Cnet. Chambers also said that Cisco and the marketplace are in a transition, and the company needs to help define the transitions.
According to Bloomberg, Chambers sent out a memo to Cisco employees in San Jose, California, and the memo said that in the next coming weeks Cisco will be making a series of targeted moves. The memo didn't give any details to what kind of changes would take place.
The memo also stated that Cisco has lost focus and has been slow at making some decisions. The memo goes on to say that Cisco is struggling to meet sales goals, all while trying to push into 30 new businesses. Now that Cisco is going to tackle different markets, they are vulnerable to competitors such as Hewlett-Packard Co. and Juniper Networks Inc.
Brent Bracelin is an analysts at Pacific Crest, and he says that Chambers' acknowledgment of having a few setbacks suggests that change is probably a very good thing for the company, according to FinicalExpress.
Some of the changes that could end up taking place is the selling off of Ehud Gelblum, Cisco's consumer business. The unit also includes the maker of the Flip video camera, Pure Digital Technologies.
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