Chambers: I will lead Cisco for three more years

Networking's biggest cheese downgrades growth forecast but claims reports of his demise have been greatly exaggerated

Cisco top dog John Chambers has silenced the rumourmongers by revealing he has agreed to stay on as the networking giant's chief executive for three more years.

Before the vendor's yearly Financial Analyst Conference, which took place yesterday, speculation had been rife that Chambers was on his way out, with the battle to succeed him intensifying.

But the West Virginian, who has been in the hotseat for 16 years, told attendees that the Cisco board had "asked me personally if I would be willing to commit to another three years". Chambers indicated that he replied in the affirmative.

The 62-year-old exec reportedly struck an upbeat note at the event, but still decimated his firm's three-year growth forecast. Cisco is now projecting sales growth for the next 36 months to be in the region of five to seven per cent, down from an earlier forecast of 12 to 17 per cent.

Cisco has been navigating choppy waters in recent months. In April, Chambers sent a brutally frank letter to all the vendor's staff, outlining how poor strategic execution had led the vendor to "lose credibility".

Since then the networking chief has excised several chunks of the firm's business, including its email product and Flip video devices. About one in 10 of Cisco's workforce have also lost their jobs.