Pedestrians walks past the headquarters of Cisco Systems Inc. in San Jose, California May 6, 2008. (REUTERS / Robert Galbraith)

Cisco Systems Inc is in the process of cutting between 1,500 and 2,000 jobs. according to an report from Thomas Weisel analyst Hasan Imam.

A Cisco representative was not immediately available to comment on the report, which also said that the company could exceed its plan to cut annual costs by $1 billion with job cuts.

Our checks indicate Cisco is aggressively managing expenses as management navigates through the downturn, Imam said in the research report.

The analyst said that on top of cuts such as reducing travel budgets and cutting variable compensation he believed that further cuts including a headcount reduction of about 1,500 to 2,000 persons is underway currently.

The headcount reduction alone would bring Cisco's operating expense run-rate down by about $200-$250 million annualized, strengthening our conviction that management will do better than its target operating expense reductions of about $1.0 billion a year, Imam said in the report.

The analyst also expects July quarter revenues to beat the average analyst estimate.

Our supply chain checks reveal order uptick across component and contract manufacturers, indicating stabilization and some growth in Cisco's top line, he said.

Imam raised his expectation for calendar year 2010 earnings of $1.44 per share on revenue of $35.82 billion from his previous estimate of earnings of $1.41 per share on revenue of $34.88 billion.

Cisco shares were down 0.7 percent in early trade at $18.04.