As part of a major realignment of its consumer electronics business, Cisco is to close the Flip video camera unit it acquired only two years ago for US$590m.
The closure of the Flip unit will lead to the loss of 550 jobs at Cisco.
The company plans to refocus its home networking business and tie it closer to its core networking and infrastructure business.
The EOS business which enabled media companies to provide a digital gateway to the home is also being closed.
Sales of consumer products at Cisco fell 15pc and have weighed heavily on the company’s gross margin.
Overall profits fell 18pc in the second quarter due to sliding margins.