Cisco: When healthy companies fire people

One of the things that happens in a very bad economy is that even profitable, healthy companies lay people off. Cisco (CSCO) fired about 700 people at its headquarters yesterday, and cut more people at other locations.

Cisco is also doing well in the stock market. Its shares trade just over $20, not far from their 52-week high of just over $25. The stock is up more than 20 percent so far this year, out-performing the NASDAQ.