Incoming Borg boss Chuck Robbins has sliced a bunch of executives from Cisco's operations in China, in a response to the territory's ongoing weak performance.
The move is also in line with Robbins' stated desire to flatten out the Borg's burgeoning bureaucracy. First Rob Lloyd and Gary Moore were given pink-slips, and later, Wim Elfrink, Padmasree Warrior and Edzard Overbeek were shown the door.
The Wall Street Journal, citing the usual “people briefed on the matter”, has named the company's China president Hahn Tu and veep Fredy Chung as being asked to step down. Owen Chan, chairman for the territory, will remain.
Sales in China have been a drain on Cisco's Asia Pacific operations for some time. Back in 2013, the company was hammered over a six per cent slump in a single quarter, and that's continued through to this year.
In April, departing CEO John Chambers noted that “we continue to see challenges” in China.
As well as the Chinese government's post-Snowden hostility to the US tech sector, the emergence of Huawei and ZTE have put the squeeze on Cisco's business in the Middle Kingdom.
The WSJ notes that Robbins has already indicated an intention to look outside the company for talent to help reverse its slide in emerging markets. ®