Cisco Systems is feeling the pinch of China s drive to become independent in technology, according to a recent report.
Falling China sales, due to a shift from foreign to local producers in China, is causing the San Jose networking giant to trim its executive staff there, the Wall Street Journal reported on Friday.
The investment firm Morningstar also reported the high-level cuts on Saturday.
Cisco could not be reached immediately for comment. The management change also is in line with incoming CEO Chuck Robbins who is trimming upper management to speed decision-making.
The Morningstar Advisor said that several senior executives in China have been asked to step down, including Cisco s China president and vice president,
Cisco beat market estimates in the most recent quarter, with sales slides in Russia and China more than offset by overall gains.
The revelations about National Security Agency snooping in China and elsewhere have put major U.S.companies on the defensive, as Chinese competitors seek to gain an advantage, according to analysts.
Beyond the so-called Snowden effect of diminished trust in U.S.companies caused by NSA leaker Edward Snowden, there is simply a push under President Xi Jinping for China to build its own brands.
Some of the sales Cisco lost in China were picked up buy Huawei, according recent reports.
Photo: Cisco sign at San Jose headquarters (Paul Sakuma, Associated Press)
