During Cisco Analyst conference yesterday, Cisco CEO John Chambers revealed that he will continue to serve for another 3 years term. Although the Sales drop of Cisco and analysts suggested that John Chambers will announce his retirement from CEO position due to declining trend of Cisco products. John Chambers, 62, has been serving as Cisco CEO since 1995 for a period of almost 16 years.
Although the resignation news were termed rumors after the announcement but John Chambers announced that for coming year he expects that Cisco growth will increase from 5% to 7% which was way below that officially announced 12% growth rate as per long term plan. Its expected that the growth figures have been lowered from 7% to 12% due to network switches and services revenue decline. Due to the declining performance, Cisco went for a major restructuring April this year in which complete Video Camera Department was disbanded along with 15% layoff i.e. more than 12,700 jobs were cut down globally.
Astonishingly John Chambers believes that this is all because of Huawei, a Chinese Telecom Equipment Manufacturer, who is coming up as one of the toughest Cisco opponent and he declared war against Huawei in order to compete in the IT & Telecom market. According to John Chambers Huawei had an exponential growth of whopping 20% YoY and is planning for 40% for coming year but Cisco will give a tough competition next year.