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.
