Is Cisco's business outlook really 'challenged' this time?

One day Cisco CEO John Chambers is describing the business outlook as "extremely challenging", the next he's saying the outlook is brighter and that he's "more comfortable with 12% to 17% long- term growth than I was a month or two ago.'' Well, the outlook seems to be back in the negative again, according to a story in Fortune, which suggests that the network giant is "bracing for a downturn." Fortune is citing "sources close to the company," as saying that Cisco has told some managers to limit travel expenses and to use up accumulated vacation days. A Cisco spokesperson told Fortune 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." According to the story, analysts say Cisco is considering bigger cuts, including cutting its workforce, if warranted. The idea of looming job cuts was first brought up by GigaOm in February.

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