Cisco landed on the trader radar after the tech titan announced plans to shut its Flip video camera business.
The move is widely considered the first step in larger plans by Cisco to overhaul its entire consumer products division.
The announcement comes just a week after CEO John Chambers sent a memo to employees vowing to take "bold steps" to narrow the company's focus.
Cisco, which is facing stronger competition from rivals in its core business, said it will realign its remaining consumer business to support four of its five key priorities — core routing, switching and services; collaboration; architectures and video.
The San Jose, Calif., company anticipates its consumer business shakeup will result in the loss of 550 jobs and restructuring charges of no more than $300 million in its fiscal third and fourth quarters.