Following the memo released to its employers last week, Cisco is starting to take action with regard to its apparent lack of role-definition in the tech world. It will dispossess some of its consumer businesses, including the Eos media solutions business, and Flip, which the company purchased last 2009 for about $600 million. It will retrench some 550 employees as well costing the company $300 million for lay off charges. Cisco said the move aims at serving its business customers by redirecting customers to them instead of buying straight from Cisco.

“We are making key, targeted moves as we align operations in support of our network-centric platform strategy,” Cisco CEO John Chambers said in a prepared statement. “As we move forward, our consumer efforts will focus on how we help our enterprise and service provider customers optimize and expand their offerings for consumers, and help ensure the network’s ability to deliver on those offerings.”

On the other hand, HD video chat device, UMI, will play a big role in the business telepresence product line of Cisco. The company’s Linksys and Valet Internet routers will still be sold, but Cisco’s Home networking division will be refocused around supporting video at home. Cisco aims at refocusing on its core strengths — core routing, switching and services; collaboration; architectures; and video

Aside from the layoff expenses it will incur, Cisco Systems Inc. is ordered by the federal judge to pay $63.8 million to Commil USA for patent infringement on wireless transmission technology.