However, his email in particular, bearing in mind it wasn't sent to the leaker alone but to all (mostly innocent) staff, comes of as almost threatening (granted not in a life threatening way, but a job and happiness way). I'm sure it won't help morale at Cisco. He may think that it will only worry anyone thinking of making a leak, but innocent staff will worry too feeling threatened in case they accidentally let something slip to a loved one or such. Such tactics are necessary in, e.g. the CIA, where "loose lips sink ships" (i.e. lives are in danger), but are not appropriate in a civil commercial enterprise like Cisco.
In my mind, he would have been better served sending a polite, professional reminder of the rules and the penalties for breaking them.
He may even have been better served trying to fix the problems that caused the "embarrassing" situation to occur in the first place (the price gouging of public institutions) and cause discontent among his staff.
At the end of the day, the leak of the email kinda shows it isn't deterring the leaker(s).