The change will apply to all of Cisco's employees worldwide, although there are likely to be exceptions for staff who live far from an office and telecommute most days, the sources said. The changes are still being finalized and are likely to be announced internally later this week.

A spokesman for Cisco declined to comment.

It's the latest example of how companies are looking beyond big-ticket items like salaries and travel to shave costs from their business wherever they can. It's a somewhat ironic move coming from Cisco, which encourages clients to use telecommuting and videoconferencing as ways to reduce travel costs and work more efficiently.

Cisco's business, like that of many vendors, is being hurt by the economic slump. Revenue for its second fiscal quarter, ended Jan. 24, was down 7.5 percent from a year earlier, with profits off 27 percent. The company has said it expects revenue for the current quarter, which ends in April, to be down 15 percent to 20 percent year over year.

Cisco announced last November that it aimed to reduce its operating expenses by US$1 billion for this fiscal year. It said it would target travel costs and discretionary expenses such as offsites, outside services, trade shows and marketing activities, among others.