Cisco Plans To Remove Its Senior Executives In China

Due to slips of sales in China, Cisco has removed many senior executives

Cisco Systems is one of the well renowned technology companies in the information technology sector that has made a positive impact ever since its inception. However according to the Wall Street Journal the company has planned to axe its few senior executives in China.  The journal says that “Company has seen sales slide amid government security concerns about foreign networking gear,” according to latest Cisco news. People familiar to the matter reported this news regarding the removal of senior executives in China.

This shake up has flattened the organizational structure of China which also is placed in accordance with the global reorganization at the company when John Chambers, the former Chief Executive, announced about his departure last month and handed over its position to another veteran of the company, Chuck Robbins. People believed that Chuck Robbins was the perfect replacement that would keep Cisco going at a fast pace in the industry. His passion of working and dedication towards the company is the main reason why the board believed in him to be the next Chief Executive.

As soon as Chuck Robbins came into this company as a Chief Executive, he demanded to have a structure within the company that can come up to conclusions and make decision more quickly. Furthermore, he reduced the number of people in his core management group to 10 members from 13 members which also noticed in an elimination of several presidents.

Moreover, according to latest Cisco update, several senior executives have been asked to tep dowwn from their positions in China which includes Hahn Tu, who is the President at Cisco in China and Fredy Cheung, the VP of the region. Sources familiar to the matter said that people could not reach Cisco for a comment. It is still unclear whether these positions are totally eliminated from China or they will be replaced in the coming times. The chairman of Cisco in Greater China, Owen Chan, will remain in China.

According to Bernstein Research, “Cisco’s China sales fell 20% in the quarter ended April 25 from a year earlier, compared with the company’s 5.1% global revenue gain. Its share of the router market in the country fell to 9.4% in the first quarter from 21.2% a year earlier, with the lost sales going to local rival Huawei Technologies Co.”

Cisco is currently facing broader challenges which are making it tough for the company to perform. It is believed that the rising competition from other companies in the software and hardware market is also an obstacle in company’s way. However, Chuck Robbins is determined to build Cisco’s position stronger in the new markets.