Brocade will shed 10 percent of staff
Published: 11 Apr 2003 09:28 BST
Storage Area Network (SAN) hardware maker Brocade has cut nine percent of its work force, the company said on Thursday, making it the latest tech company to wield the axe.
The storage networking switch maker said it cut 115 positions, leaving it with 1,200 employees worldwide. Brocade's layoffs were announced the same day that handset maker Nokia said it would slash 1,800 workers from its networking division.
Brocade made the cuts one week after holding its annual analyst day, in which the company reiterated its financial outlook for the second quarter. Brocade assured analysts it was comfortable with its projections of revenues totalling upwards of $133m (£84.6m) and of breakeven earnings per share.
Brocade plans to release its second-quarter results on 14 May and anticipates taking a one-time charge for the layoffs in the second quarter.
Although Brocade stood by its second-quarter projections, an analyst with AG Edwards noted in a report that the company's long-term financial goals appeared "lofty," given the increasingly competitive environment with McData and Cisco Systems.
Storage area network switch makers are seeing increasing consolidation amid slower growth. Last week, Brocade's rival Inrange Technologies was acquired by Computer Network Technology.
News.com's Ian Fried contributed to this report.
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