Cisco to dump Linksys, WebEx?

Site posts moves could come next week

Cisco is rumored to be looking to sell its Linksys home and consumer networking business as it looks to shave $1 billion in expenses by eliminating product lines and jobs. The Register posts this possibility, along with another: "letting go of its WebEx brand."

The Register cites people familiar with the discussions as its source, and states that Cisco declined to quash the rumor.  When a company won't comment on it, as Cisco did in this case, that's pretty much not even acknowledging it.

Cisco's been advised to sell off its consumer operations after disappointing performance in both that, and its core switching market. Cisco admits it was distracted as it embarked on a significant product transition in switching, and some blame too much time targeting tangential markets like consumer.

CEO John Chambers vowed to get the company back on track through renewed focus on core markets like routing and switching, and an exit from markets that do not fit with that plan. Linksys and Scientific-Atlanta have been suggested as possible divestiture targets following the closure of the Flip videocam business.

When Chambers disclosed during Q3 results that Cisco planned a workforce reduction in fiscal 2012, analysts said it could result in the elimination of 4,000 jobs, the largest layoff in Cisco's history. Cisco is already offering early retirement to US and Canadian employees over 50 years old.

The Register says Cisco could move on Linksys and WebEx as soon as next week.

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Cisco grapples with transition as switches and routers lag

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