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Brocade Denies More Cuts

The latest murmurs of further headcount reductions at Brocade Communications Systems Inc. (Nasdaq: BRCD) aren't likely to make CEO Greg Reyes happy, as he was clearly in defensive mode this week on the topic of job cuts.

After the company's quarterly report Wednesday, the first analyst question related to whether job cuts would continue. Reyes didn't appear to like where the conversation was going.

"I really want to make sure that everybody is clear on this, that this restructuring we've taken is not a pattern," Reyes said. "It was done in the right way. And... we have done it in a way that gives us headroom to continue to invest in the business. Now, all that being said, I can tell you we're going to strive to continue to improve our business model and hold people accountable for performance."

Brocade laid off 110 employees, or 9 percent of total staff, this quarter, leaving an employee census of 1,100 (see Brocade Cites Plans For Growth). Cuts were made across all areas of the firm and include 25 hardware engineers laid off in February (see Brocade Shaves Heads).

The question now is, will they lay off more people?

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