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Cisco flips its lid, axes 550 workers

Cisco has announced a cunning plan to trash "aspects" of its consumer businesses and realign what's left into five sectors.

The biggest news for customers is that its Flip business is for the chop. Cisco said it will shut down the entire business and committed to what it called a 'transition plan' to support current FlipShare customers and partners.

Cisco's Flip business has proved popular with consumers, although evidently less lucrative than networking gubbins and switches. The networking outfit paid some $590 to acquire Pure Digital Technologies, the maker of the Flip cam, for back in 2009.

The move will cost some 550 workers their jobs, the company said in a statement. It will also spend about $300 million getting rid of them, the type of action that generally pleases greedy shareholders

Cisco chairman and CEO, John Chambers (pictured) said the "key, targeted moves" were designed to "align operations in support of our network-centric platform strategy.

"As we move forward," he burbled, "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."

Cisco's intention is to 'refocus' its home networking business and connect to the company's core networking infrastructure as the network expands into a video platform in the home.

The firm said it would integrate its ūmi products into the company's Business TelePresence product line and assess the integration of core video technology into its Eos media solutions business or seek other market opportunities for the business.