Vitesse Semiconductor

(VTSS)

said it cut 130 jobs, or 10% of its staff, in an effort to reduce expenditures as it copes with slumping sales and an overall slowdown in the telecom industry.

But the company reaffirmed its previous outlook for the first quarter, saying it remains comfortable with an estimated loss of 11 cents to 14 cents a share.

Shares of the optical networking firm closed at $13.58 yesterday.