Is the company out of its depth?
Cisco Systems is shutting its Flip video camera business and will cut 550 jobs as its consumer products unit is overhauled.
It's the world's biggest computer networking equipment developer and is now trying to diversify.
Only last week, Cisco chief executive John Chambers admitted the firm lost its way and promised to focus more by taking "bold steps".
In a statement Mr Chambers said: "We are making key, targeted moves as we align operations in support of our network-centric platform strategy."
Cisco bought Pure Digital Technologies, the maker of the Flip camcorder, for $590m (£360m) in 2009. It quickly became a top seller thanks to its intuitive use, with a unique USB connector that flipped out of the case enabling the camera to connect with a computer directly.
Losing out to the competition
In recent times it has lost out in competition with smartphones which already include high-spec cameras, including higher end handsets such as the HTC Desire HD and the iPhone with around 8mp+ cameras and can handle High Definition video.
The company now states that it might have to restructure its consumer business in order for the division to be sold and it's understood Cisco wouldn't be able to generate any proceeds from a sale of the business.