Another wave of job cuts at ECI Telecom (Nasdaq:ECIL) ( ECIL) is inevitable, say analysts covering the company. The Israeli tech company already let more than 1,500 people go in the last 18 months. ECI's second-quarter 2002 results more or less met forecasts. The Israeli tech company's revenues slid 29% from the parallel quarter to $188.3 million. It lost $7.5 million, or 7 cents per share, much better than the $36 million it lost in the corresponding quarter of 2001. But ECI's own view of the future is not encouraging, given the telecom industry's persisting slump. Also, the company's operating costs were a worrisome $76 million for the quarter, about the same as in the first quarter. At year-end 2001 ECI had 4,128 people on the payroll, of whom 3,374 worked in Israel. "I have not a shadow of doubt that the company will have to cut jobs," says Rami Rosen, a senior analyst at Oscar Gruss. He predicts that the third quarter will be worse than the second, and sees no good news in the communications industry that could help ECI prevent dismissals. UBS Warburg analyst Jonathan Half concurs, on the grounds that ECI must lower its operating costs. He is disappointed that the company allowed its operating expenditure to remain at that level, he says, especially as the Israeli currency played in their favor during the quarter, helping the firm slightly lower operating costs. Half sees no upswing in the communications industry in the coming two or three quarters, forcing ECI to adjust its spending structure including through job cuts. While about it, ECI should also improve its production costs, Half adds. Market sources surmise that ECI will have to let about 500 people go. The company refused to comment. In its second quarter statement, ECI said it expects its market conditions to continue deteriorating in the second half of 2002, and that it expects its third-quarter revenue to shrink by 13% to 17% versus the second quarter.