DJ Cisco's CEO: Slowdown To Extend Into 2H Of 2001 >CSCO
14 Mar 13:57
BOSTON (AP)--Cisco Systems Inc. (CSCO) Chief Executive John Chambers said
Wednesday that "the next couple of quarters will be tough" for the company,
while trying to reassure business leaders in Boston that his company knows how
to adjust quickly to changing conditions.
In comments to the Boston Chamber of Commerce on Wednesday, Chambers also
reiterated that the company will struggle in the coming year.
The remarks echoed those Chambers made to investors at the Merrill Lynch
Global Communications Conference in New York on Tuesday. Chambers said then
that conditions still haven't improved from the sharp downturn the company
experienced in January.
But Chambers said Wednesday the slowdown is "very much under control" if
companies listen to their customers, the Federal Reserve Bank acts quickly to
cut interest rates, and Congress passes a "meaningful tax cut."
"I think more is much better than less," he said of a potential rate cut. He
said he would be surprised and disappointed if the Fed didn't act aggressively
at its meeting next week.
Cisco's announcement last Friday that it would cut up to 5,000 full-time
employees - about 11% of its regular work force - sent the markets into a
tailspin Monday, with the Dow falling 436 points. The switching equipment and
software company also said Friday it planned to cut up to 3,000 temporary and
contract workers.
Chambers didn't comment specifically on how Massachusetts would be affected
by the cutbacks, but did say "We're only going to have three or four major
cities around the world. This will be one of them." San Jose, Calif.-based
Cisco has a major research facility in Chelmsford, Mass.
The Dow fell sharply again Wednesday, falling more than 360 points in early
afternoon trading. Cisco shares slid $1.38 to $20 in trading on the Nasdaq
Stock Market. The company is 75% off its 52-week high.
Chambers called the downturn "speed bumps" caused by a sharp slowdown in
information technology that is now starting to affect business in Asia.
He said he also worries that government policy-makers aren't getting their
information fast enough, working with data that are often weeks or months old.
(END) DOW JONES NEWS 03-14-01
01:57 PM |
