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Cisco's Flip business closes; 550 workers to be cut

Matt Hamblen, Computerworld | April 12, 2011
Cisco Systems on Tuesday announced that it is killing its Flip portable video camera as part of a restructuring effort that includes exiting other consumer-oriented lines of business and reducing its headcount by 550 workers.

"As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network's ability to deliver on those offerings," Chamber said.

A year ago, Cisco was supporting and touting upgrades to the Flip line. Among other things, the company added HD capabilities to the camera and promoted it in ad campaigns on the Web. There were even rumors that Cisco planned to sell a Wi-Fi-ready Flip, but that hasn't happened and now it's unclear how much longer the company will continue to support the camera.

Cisco has taken steps to make its Umi home telepresence products more affordable, and it has promoted the systems in national TV ads, but analysts think the market for Umi products will be limite


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