Cisco Collaboration Unit Reshuffles Leadership Team Amid Restructuring

Multiple high-profile Cisco executives associated with the IT giant's Webex portfolio have left the company amid companywide changes.

With the IT giant set to reduce its global workforce by some 7%, or more than 5,500 employees, Cisco is returning to pre-pandemic staff numbers. The company also plans to merge its networking, security and collaboration units.

In the meantime, a reshuffling has occurred among the leadership of the collaboration unit. Muthukrishnanhe has returned to Cisco to serve as its chief contact center evangelist.

Other execs have left.

Jono Luk gave notice last week, telling Channel Futures, "I left for personal reasons." Luk sat at the top of Cisco's flagship Webex platform as its vice president of product management for almost three years.

Jono Luk

He will now serve alongside former senior Cisco executive Lorrissa Horton, who will become CEO at SumerSports, leading a firm that leverages artificial intelligence (AI) and quantitative analysis to create "precision in player acquisition and roster management in the NFL." Horton was vice president and general manager of Webex calling and online.

Luk will join as the company's chief product officer.

Lorrissa Horton

And nearly two weeks ago, Javed Khan, who served as senior vice president and general manager of collaboration, stepped down following a nearly ten-year tenure. Cisco collaboration’s chief product and technology officer, Anurag Dhingra, will assume the role.

Related:Cisco Confirms 7% Layoffs, Revenue Down 10% in Latest Quarter

Restructuring Could Imply "A More Focused and Streamlined, Cisco"

Craig Durr, chief analyst at The Collab Collective, told Channel Futures that Cisco's overall reduction in staff has brought it back to its pre-2019 or pre-pandemic numbers.

"Essentially, it is resetting the workforce to where it was before the pandemic-driven boom, and the term 'efficiency' has become a key narrative as companies streamline operations and adapt to new market conditions, including the influence of deflationary technologies like AI and automation," Durr told Channel Futures this afternoon.

He insists it is about much more than cutting costs. He says it is about optimizing for future growth.

It could also spell good news for partners, Durr said, commenting, "For partners, the move could imply a more focused and streamlined Cisco, potentially leading to more targeted and strategic collaborations, moving forward."

Keeping the Vision of Cisco Collaboration

While Cisco's revenues have slumped some 10% and the collab giant has entered its second round of mass layoffs in 2024 - Durr says, despite this, "The company exceeded quarterly expectations, and this aligns with industry-wide trends where even companies posting strong revenue and profits are making significant headcount reductions."

Related:UJET Hires Cisco Alum to Lead Channel, Renew TSD Footprint

He says, in this instance context is key, and you have to "look at Cisco’s recent performance, which reflects a recurring theme in the tech industry."

In February, Cisco cut approximately 4,000 workers from its roster.

Irwin Lazar, president and principal analyst at research firm Metrigy, gave an optimistic outlook for the channel.

"Fortunately, they've promoted from within, as well as brought back Vinod who was recently at Cisco, so I do not expect any significant impact for channel partners," he said.

Muthukrishnan sold his business Cloudcherry to Cisco in 2019. After working at Cisco for three years, he joined Uniphore as its chief customer officer.

Lazar further conveyed that he hasn't seen anything that indicates any "radical change in Cisco's strategy," as he called it.

"The most recent earnings announcement shows that the collaboration group is continuing to execute on shifting customers to software while growing its video devices business, offsetting the loss of traditional on-premises phone systems and telephones," Lazar said.

For him, things are business as usual for partners as Cisco heads into Webex One in October.