Cisco (CSCO) Chairman and CEO John Chambers spoke with FBN’s Dagen McDowell about the company’s disappointing earnings released yesterday. Chambers discussed Cisco’s upcoming restructuring saying “we have been very candid about our ability to change” and admitted the changes “will take time.” When asked if the company’s poor performance is an indication he should step down, Chambers said “We are changing very rapidly as a company. I have a great leadership change leading this charge.” Excerpts from the interview can be found below, courtesy of Fox Business Network.
On whether Cisco’s poor performance indicates it is time for him to step down:
“We have been very candid about our ability to change. We have handled the downturn more effectively than anyone else. I’d be surprised if you don’t hear very strong support from our customers. I have got to change just like anybody else. We are changing very rapidly as a company. I have a great leadership change leading this charge. Our leadership team building on the strengths and focusing on the two problematic areas.”
On whether they are losing market share in the public sector:
“No I don’t think so. We have well over 70% market share in public sector. We have two problematic areas; public sector, as our government cuts back on spending it hits technology. Public sector will eventually level out. Switching; a lot of good competitors, it speaks to viability of the market. We have high 60 market share here. We have held on to that type of market share for two decades.”
On how long it will take to restructure the company:
“It will take time. We’ll do a lot of heavy lifting behind the scenes during Q4. That will slow us a little bit down in Q4. Coming out of that, we will be very candid about what we saw in Q4 and our expectations for Q1 and then we will do it one step at a time. The restructuring will take three to four quarters, it will be a gradual process. Our employees are ready for this, but we want to treat them very fair and we want to do it right.”