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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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rjmcmahon 12/5/2012 | 4:56:57 PM
re: Who Else Is Exiting Cisco?

Ok, if I gave you access to some of the most educated people in the world, tens of billions of dollars in cash, and tell you all of the significant problems of which the solving would add significant value to society and your response is "Hey, I'll send out a phony mea culpa and I'll cut $1B in expenses by firing staff!" I think I'd be doing shareholders a service by firing you instead.&nbsp; But the CSCO board is stuffed with sock puppets and the CEO seems to be a narcacist so it's going to be a long time coming to fix the core of the problem.

bollocks187 12/5/2012 | 4:56:57 PM
re: Who Else Is Exiting Cisco?

It was Craig comments


. The real question that LR should be posting is perhaps its time for JOHN to move on..........versus to wuote Craig "im actually dont mind that" or "he strikes me as someone who gets a lot out of good debate


It is of course his opinion but clearly as to my post and opinion John is ample rewarded for both failure and success - while others under his command take the negative impacts. A real leader would take responsibility for their failure and get up and resign working with the board take the golden handshake and give someone else an opportunity.


&nbsp;


We in the USA have become immune to poorly performing CEOs and let them and the BoD get away with robbery.



&nbsp;









upand2theright 12/5/2012 | 4:56:55 PM
re: Who Else Is Exiting Cisco?

On Wall Street,&nbsp;Cisco fatigue is Chambers fatigue. Whether he steps aside (e.g. Lew Platt) or gets pushed out by insitutional investors, that's the exit to watch. &nbsp;I also believe his replacement will be an outsider (e.g. Ray Lane or Mark Hurd).&nbsp;

CapitalC 12/5/2012 | 4:56:54 PM
re: Who Else Is Exiting Cisco?

I can't see how institutional investors will change the board and push Chambers out.


Cisco is the epitome of "widely held". Since it's been added to the Dow 30, it's also a must-hold for every large-cap index fund. And every NASDAQ fund, tech fund, S&amp;P 500 fund, etc.


Perhaps Apple will replace Cisco in the DJIA. Still, there are around 1,000 passive institutional investors and ETFs that will hold the stock because they have to, and will simply vote for John's slate of directors. And then there are all the employees, grandmas, and charitable trusts that will hold the stock come hell or high water. A hedge fund would have an exceedingly difficult time picking up even 10% of the shares from the few active investors.


The end game here is that Chambers will simply retire once he's liquidated his CSCO holdings. Fortunately he is exercising and selling as fast as he can.


Who John will choose to succeed him is anyone's guess but I wouldn't bet against the Darden MBA with good hair and bad business judgment.

akvasu 12/5/2012 | 4:56:53 PM
re: Who Else Is Exiting Cisco?

How much would you price Cisco's Overpriced routers at ?&nbsp; All companies worth their salt price at similar ranges... if you had secret government funding and acess to Source Code and Hardware Design from other firms AND didn't give 2 pence to thoughts of quality then products would be priced lower......

quicktime 12/5/2012 | 4:56:52 PM
re: Who Else Is Exiting Cisco?

Apple will replace Cisco in Dow Jones?


Cisco feels chilly, we see Juniper, Broadcade diving.


That is the barometer of the economic.


APPLE is still in its history high. Does this


refect today's US economic?

gotman 12/5/2012 | 4:56:52 PM
re: Who Else Is Exiting Cisco?

What's with the rumor on the street that no less than 6-8 Juniper execs have just joined Cisco? What the hell? can someone confirm? Whats going on at Juniper?

^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? &nbsp;Gotta be some kind of legal "non compete" in the high level executives employment contracts....&nbsp;


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. &nbsp;


should be interesting.


On the counter flow, several key Cisco optical leaders left Cisco in the last year or so and joined Juniper. &nbsp;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.


sailboat

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

It's 6 sales folks including 2 execs:


http://www.lightreading.com/document.asp?doc_id=210890

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.

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