Cisco Systems Inc. CEO John Chambers said Tuesday that the company is “taking a more agile approach” to its business.
In a company-wide memo, Chambers said the company has changed how it works and that its team is more engaged, efficient and effective.
Cisco, based in Sunnyvale, Calif., is widely seen as one of the top corporate technology players, though its growth has slowed amid concerns about cybersecurity.
Chambers told employees the company will use its “stronger” strategy and focus on its core businesses in order to continue growing and attract new talent.
The Cisco CEO’s memo was the first of several in recent months that shed light on the company’s shift away from a traditional software-defined network architecture and toward a software-as-a-service (SaaS) model, which has been seen as an efficient way to build products and services without spending huge amounts of money.
Cuts to the top of the company have been a common theme in the past year, but Chambers noted that “these cuts have been less extreme than some have seen in recent years.”
He said Cisco has been able to attract top talent and keep them because of a “strong and consistent alignment of strategy, execution and talent.”
Cisco CEO John Casares center, flanked by Cisco co-founders, CEO John J. Chambers and CTO Jonathan Pollack, listens as he speaks during a media conference at the Cisco Institute in San Jose, Calif.
On Tuesday, Chambers wrote that the changes are “toward a more lean, agile business model that makes Cisco a more valuable business for its customers.”
Cities and municipalities have long relied on Cisco for security and data center services.
Chambers said that he has been “encouraged” by how well Cisco has done in many of those markets.
“The changes I have seen at Cisco are really positive,” Chambers said.
“They are encouraging, and they are a sign that the transformation that we have undertaken over the last few years is working.”
Censys stock has fallen more than 16% since Chambers’ memo was published.
Cohn said that Cisco is “at the stage of a fundamental transformation of our business model.”
In an interview, he said Cisco is now “focused on a very fundamental transformation” and will use the “removal of layers” of software and infrastructure as a way to “dramatically improve” its overall performance.
Citizens United v.
FECThe Supreme Court on Tuesday struck down a 2010 federal law requiring the Federal Election Commission to report on how political contributions are made.
The ruling came in a case brought by conservative group Citizens United v, FEC, which challenged a 2008 law requiring candidates to disclose their donors.
Censy stock dropped nearly 20% Tuesday.