Chambers noted, however, that the economic challenges now gripping the U.S. have spread to Europe, Asia and emerging market countries. As a result, Cisco's order growth during the quarter underwent "dramatic variability," Chambers said, with solid mid-to-high- single digit becoming a 9% decline in October.

While Chambers said he's confident that Cisco can weather -- and ultimately even prosper from -- the current economic storm, he outlined ways that Cisco plans to cut back. The hiring freeze, combined with other efforts such as a reduction in travel, events and marketing expenditures, should help the company reduce expenses by $1 billion from its original budget for its second quarter, he said during a conference call Wednesday.

Orders in the U.S. were down 8%, with enterprise orders declining in the high-teens. Globally, enterprise orders were down 11% in Cisco's first quarter, compared to flat order growth for other company markets.

That's casting a pall on Cisco's second quarter. The company expects revenue to decline by 5% to 10%.

Nonetheless, Chambers says he's sticking to long term growth rates of 12% to 17%, assuming the economy returns to "normal growth."