Cisco announced it will close its Flip unit as part of a widespread reorganisation to focus on key priorities. Two years ago the company paid $590 million for Pure Digital Technologies, the firm that invented the Flip camera.
The networking and router company Cisco is shutting down the consumer-oriented Flip camera business that it bought for $590m in 2009. The move will mean the loss of 550 jobs worldwide, cost Cisco $300m – and disappoint thousands of users who had enjoyed the devices' simplicity.
The shutdown, announced on Tuesday afternoon as part of a widespread reorganisation as the company attempts to rejig its business, will see Cisco reorganise its remaining consumer businesses to support its existing "key priorities" – notably the routers and switches that generate the majority of its sales.