RealTime IT News

Brocade Shaves 9% from Staff

In an ongoing effort to cut costs, Brocade Communications Systems late Thursday laid off 115 employees, or 9 percent of its workforce.

The San Jose, Calif.-based firm, a leading manufacturer of storage area network (SAN) switches that forward data packets across local area networks (LANs), said the company has retained a worldwide staff of 1,200 after the cuts.

Brocade, which made a major strategic play when it purchased rival Rhapsody Networks for $175 million in stock last November, said it pared its staff to better align and optimize its business model.

Brocade, who slashed 12 percent from its workforce less than two weeks after it purchased Rhapsody last year, competes with McData and Cisco in the market for SAN switches. CNT leapt into the fray earlier this week when it agreed to acquire Inrange Technologies.

Brocade first discussed streamlining at its annual analyst day last week, when it stated its financial outlook: Brocade anticipates revenues of about $133 million for the second quarter.

Brocade expects to take a one-time charge associated with the cuts in Q2. Additional information about the charge will be disclosed when the firm reports its Q2 results on May 14.

Layoffs, de rigeur in 2001 and 2002, have slowed in 2003, but major firms occasionally take measures to cut costs in a constrained economy. Thursday Nokia laid off 1,800.