cisco - 500 and other major Wall Street banks pulling down...

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Cisco signals trouble ahead Cisco Systems, one of the country's biggest technology companies, appears to be bracing for a downturn. The San Jose maker of Internet networking gear has told some managers to cut back on travel expenses and use up accumulated vacation days, according to sources close to the company. Both steps could be early signs that deeper cutbacks have yet to occur. The caution being taken is a jarring new turn for Cisco (CSCO, Fortune 500), which crashed hard when the technology bubble burst earlier this decade but has since rebounded on a major push into video and rising worldwide demand for Internet routers. It's also an ominous sign that the U.S. technology industry is facing a slowdown as key customers prepare for a recession. Wall Street took the comments as a sign that business wasn't getting worse for Cisco, but some investors weren't won over. With the trouble at Citigroup (C, Fortune
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Unformatted text preview: 500) and other major Wall Street banks pulling down the financial sector and the overall weakening of the U.S. economy, Cisco investors have grown edgy. The stock is down 29% from its 52-week high of $34.24 in November. A Cisco representative declined to comment on the travel and vacation memo, but wrote in an e-mail that the company "constantly reviews ways to streamline and optimize business processes for improved efficiency and increased shareholder value. We are going to be aggressive, which means we may prioritize in some areas of expense in order to be aggressive in others," the spokesperson continued. Analysts say the company has slimed down its staff in a few places and is considering additional bigger cuts if necessary. Cisco hasn't had massive layoffs since the collapse of the Internet bubble, so any major cuts are likely to draw renewed parallels....
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cisco - 500 and other major Wall Street banks pulling down...

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