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Who Else Is Exiting Cisco?

11:25 AM -- Cisco Systems Inc. (Nasdaq: CSCO) started handing out layoffs this week -- they're probably done by now, in fact -- and I can't help thinking that the list will include at least one more executive we've heard of.

With cuts pledged to sweep the company and cover 15 percent of the top ranks, it seems likely that one or more big names tied to telecom or the cloud will be leaving. (See Cisco Simplifies; Cuts 6,500 Jobs and Did Cisco Cut Deep Enough?)

One has already bowed out, and that's Enrique Rodriguez, who had been running Videoscape. It was a high-profile assignment that was the centerpiece of Cisco's CES presence in January, and now it's in the hands of Marthin de Beer, who runs Cisco's Emerging Business group. (See Cisco's Videoscape Leader Resigns.)

But I have a feeling someone else might go. I wouldn't be surprised if it was Ned Hooper, the chief strategy officer.

It's hard not to notice that the two things Hooper has recently been in charge of -- consumer products and strategy -- are two of the most highly criticized aspects of Cisco in the months leading up to the restructuring. Some analysts put it less kindly, especially the consumer part.

As far as we know, Hooper still has a role on the consumer side, but it seems to be a diminished one. With the exit of Jonathan Kaplan -- former CEO of Pure Digital (the Flip company) and Cisco's former senior vice president of consumer products -- Hooper has been sharing chairmanship of Cisco's consumer council with de Beer.

For a while, it looked as if Hooper was being groomed for big things at Cisco, and that might still be true. But it's de Beer who's taken the spotlight more often recently. At the very least, the guy who we once thought was being groomed as a possible CEO successor might be getting pushed to the margins. (See Hooper's Ascent Continues at Cisco.)

— Craig Matsumoto, West Coast Editor, Light Reading

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quicktime 12/5/2012 | 4:56:40 PM
re: Who Else Is Exiting Cisco?

Does it mean something fishy was happening inside Juniper?

Or else,  it does not make sense for high executives, who benefit

from the growth, to jump out of the ship.

bollocks187 12/5/2012 | 4:56:40 PM
re: Who Else Is Exiting Cisco?

CISCO obviously bought them off with huge sign-on bonus and incentives. Th ffort is to clalry cripple hurt Junipr.

 As a customer tho I would be somewhat distrurbed if on day your selling Juniper and the next week you are selling CISCO as a replacement - lol. Never trust a salesperson as they are only as good as their last sale.



bollocks187 12/5/2012 | 4:56:41 PM
re: Who Else Is Exiting Cisco?



I to do not understand/apprciate  the valu of FLIP and why on earth CISCO is invovld in such device.


bollocks187 12/5/2012 | 4:56:41 PM
re: Who Else Is Exiting Cisco?

Well of course you MUST IMHO blame JC lack of vision and leadership.

Or perhaps you are saying it is not his fault because the economy is in the tank/gutter ? Unlike the Public sector the Private sector should operate on performance.

Cisco with JC at the helm has had ample time and opportunity to break out and perform.

Once again I say it is time the market and share holders to start firing CEO's that exhibit a mindset of  "freedom from responsibility/accountability".

desiEngineer 12/5/2012 | 4:56:43 PM
re: Who Else Is Exiting Cisco?

You don't blame the CEO for the depression in the public-sector - you blame them for not having the vision to deal with that problem.  Are you saying cisco is a one-trick pony?  Doesn't have the right people to lead them into new markets?  Cannot figure out a foray into the camera business (or other consumer devices) hasn't been working long before the analysts?  Isn't capable enough to make the tough choices?  So, what do you fault JC for?  The only reason it won't happen is: who could/would take over?


Pete Baldwin 12/5/2012 | 4:56:44 PM
re: Who Else Is Exiting Cisco?

Thanks for the post, upand2theright. That's pretty much what i was thinking -- in pondering which 'name' executives might not survive this reorg, I had to be drawn to the one whose major initiative stumbled badly.  Hooper seems like a sharp guy, but I hear some Cisco observers questioning what he's contributing.  I'm not saying he's the source of Cisco's problems; he's just a likely target.

As for the source of Cisco's problems ... I'm not as convinced as others Chambers needs to go. Sorry. I liked his adjacencies strategy, although I agree Cisco went a little too far with it. (Still don't understand Flip, as I've said.)  And some of what's going wrong with Cisco -- like the depression in public-sector business -- can't really be blamed on him.

Shrinking margins: Now, that's a problem. It's also inevitable IMHO. You could argue Chambers isn't the guy to lead Cisco into the lower-margin era (or to find new areas that could bring up margins).  I'm not ready to say that yet, but hey, I could be proven totally wrong in a year or so.

upand2theright 12/5/2012 | 4:56:48 PM
re: Who Else Is Exiting Cisco? Ned Hooper, the Darden MBA, is talented guy. But the consumer lob miss puts him in the penalty box. Craig, I am surprised you are not jumping in here.
gotman 12/5/2012 | 4:56:49 PM
re: Who Else Is Exiting Cisco?

We love slagging crisco, but top down everyone knowns they can just eat everyones lunch and when they have cleaned up their shop, there is no better place to be and grow, apart from other personal financial benefits they would be the reasons. I wonder if they joined as a group, and IF it was SVP Dave who recently also joined Cisco from Jnpr behind it? Poaching engineers is one thing, and probably an easy thing to do, but to line up 7 seniors and move them requires some class, specially when Cisco has enough on its plate, very succesful ambush. All their competitors should be worried.

^Eagle^ 12/5/2012 | 4:56:50 PM
re: Who Else Is Exiting Cisco?

Any Ideas why those execs walked to Cisco?

Or was it simply that Cisco pulled a political trick and simply bought them off?

And finally, any bets on how long it takes Juniper to sue either those executives or Cisco or both?  Gotta be some kind of legal "non compete" in the high level executives employment contracts.... 

And gotta be a lot of risk of those execs knowing too much about Juniper's internal cost of good, juniper customer confidentiality, and other Juniper proprietary information.  

should be interesting.

On the counter flow, several key Cisco optical leaders left Cisco in the last year or so and joined Juniper.  and several from one of Cisco's key high speed optical module suppler (Opnext nee Stratalight) also jumped and went to Juniper.

of course those were not as high level staff as the sales execs that went to Cisco.


Pete Baldwin 12/5/2012 | 4:56:50 PM
re: Who Else Is Exiting Cisco?

It's 6 sales folks including 2 execs:


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