San Francisco -
said Tuesday it will shut down its Flip pocket camcorder operation, just two years after acquiring the one-time disruptive camcorder trendsetter, then called Pure Digital Technology.
In a statement, Cisco said it will exit aspects of its consumer businesses, including the Flip unit.
Cisco CEO John Chambers recently disclosed problems with the company related to slow decisions, among other factors.
Cisco acquired Flip maker Pure Digital Technology in 2009 in a stock deal valued at around $590 million. Since its market entry in 2007, the company had achieved huge market share gains in the competitive digital camcorder category, offering an easy-to-use pocket-sized model that sold at a fraction of the price of competitive offerings.
Though most camcorder makers responded with similar pocket-sized models of their own, the popularity of the diminutive point-and-shoots shaved even more margin from a category that was already compressed by price competition.
As part of the restructuring, Cisco said it will cut about 550 jobs.