CEO John Chambers said last month that Cisco didn't plan any mass layoffs, which he characterized as 10 percent or more of staff, but he said it might reduce headcount by up to 2,000 through "realignment" and "restructuring." The first few hundred workers were laid off last month, according to published reports.

Many tech companies have made much wider layoffs, and some have been cutting salaries and bonuses as well. Intel confirmed on Monday that it had frozen salaries across the entire company. "We are in the toughest recession in the history of our industry and we need to continue to control our costs," said Intel spokesman Chuck Mulloy.

Reducing payments for home broadband may seem like a small move, but for a company with more than 60,000 employees, the expenses could add up. Cisco also stopped providing free sodas to its staff about a month ago, one of the sources at the company said.