Brocade announces layoffs

The storage networking switch maker cuts 9 percent of its work force, making it the latest tech company to wield the ax--earlier, Nokia Networks had announced layoffs.

Brocade Communications Systems cut 9 percent of its work force, the company said Thursday, making it the latest tech company to wield the ax.

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 handset maker Nokia Networks said it would slash 1,800 workers from its payroll.

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 totaling upwards of $133 million and of breakeven earnings per share.

Brocade plans to release its second-quarter results May 14 and also 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 rival Inrange Technologies agreed to be acquired by Computer Network Technology.'s Ian Fried contributed to this report.