550 to lose job as Flip camera moves towards death

Cisco Systems has finally decided that it will be going to shut down its Flip video camera unit. This is part of its major retreat from the consumer electronics segment and comes two years after it paid $590 million for the same.

The California-based company has also decided that it will be laying off 550 workers as part of its restructuring strategy. But it is not sure whether the Boston unit will be closed or some other part. If that is the case then, employment of 2,000 employees are under threat who are working in that area.

What is surprising is that Cisco is moving out of the system for which it has acquired 14 companies since 1994. The list also includes a cellular data-networking company named Starnet Networks which it bought for $2.9 billion, in

But that is not all that has been finalised by Cisco. It is also going to re-target the Umi teleconferencing products for B2B sale rather than B2C selling. This marketing shift, however, does not apply to Linksys home networking equipment. For it, Cisco will be using the medium of Internet video at home.