Cisco confirmed that its Collaboration arm will merge with Networking and Security in a corporate restructuring while outlining that its Collaboration product orders grew "by double digits" in its most recent earnings call.
In its earnings call for Q4 FY24, Cisco CEO Chuck Robbins said that Cisco was bringing its Networking, Security, and Collaboration teams together as one organisation. Experienced Cisco executive Jeetu Patel stepped into an expanded role as the new business's Chief Product Officer.
Robbins said in a separate blog announcement:
Today, I shared that Jonathan Davidson has made the decision to step away from his current role leading Cisco Networking and will now serve as an advisor to me. With this, we are bringing our Networking, Security, and Collaboration teams together as one organization led by Jeetu Patel as he takes on an expanded role as Cisco’s EVP and Chief Product Officer."
Robbins also confirmed that once Splunk is fully integrated into Cisco's portfolio, the Splunk product line will also be incorporated into the new organisation at the right time. "This will bring our entire product portfolio together as one team," Robbins added.
In other Collaboration tidbits from the earnings call, Collaboration product orders grew by "double digits".
Richard Scott Herren, Cisco EVP and CFO, highlighted that while product orders are growing, Collaboration sales were flat this past quarter, "driven by growth in our cloud calling and CPaaS offerings, offset by declines in meetings and devices".
Other Collaboration arms counterbalancing Cisco's declining meetings and devices revenues is an ongoing trend. The same dynamic occurred in Q3 FY24 when cloud calling and contact centre sales offset the decrease in meetings and devices.
Cisco also announced a seven percent cut in its workforce during its latest earnings call, around 6,000 employees. Robbins cited "a restructuring plan to allow us to both invest in key growth opportunities, as well as drive more efficiency in our business". Robbins said Cisco's aim is to "remain laser-focused on growth and consistent execution as we invest to win in AI, cloud, and cybersecurity".
