Thomas Weisel Reports Cisco Layoffs

Cisco has yet to respond, but research analysts at Thomas Weisel Partners report that the rumors of layoffs at the network behemoth are true.

If Thomas Weisel is correct, Cisco will slash as many as 2,000 jobs to reduce operating expenses during the continuing global recession, which has caused the company’s customers to reduce or defer expenditures.

Cisco’s layoffs would reduce operating expenses by $200 million to $250 million a year, part of the company’s broader goal to cut annual costs by $1 billion, according to Thomas Weisel.

This news, particularly as it suggests the worldwide economic downturn continues to eat into the revenue and profitability of technology bellwethers, could lead to a renewed chill on technology stocks as the second-quarter earnings season begins.

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