Cisco shares dip after reports of holiday shutdown
Locking doors to pay the bills
Cisco Systems plans to shut down its US and Canadian operations for the last week of December as part of a larger plan to cut fiscal 2009 expenses.
A Cisco spokeswoman confirmed the year-end office shuttering with El Reg, saying the networking omnicorp will close its doors December 29 through January 2. Certain exceptions will be made for certain business-critical teams like technical assistance and product ordering services for channel partners and customers.
The shut-down is part of Cisco's plan to reduce its fiscal 2009 expenses by over $1bn, "given the challenging macroeconomic environment," according to a company statement.
Other steps in Cisco's cost-saving scheme include reductions in travel and "discretionary-related expenses," like outside services, trade shows, prototypes, marketing, and equipment.
Shutting down operations at the end of the year isn't entirely uncommon for tech firms over the past few years, but it's the first time in Cisco's history that its swung such a plan into action.
Certainly a sign of the times.
Cisco's stocks fell nearly 6 per cent in the final hour of trading after news of the shut-down began to circulate. And some are blaming Cisco's four-day US and Canadian vacation on the overall decline of the tech-happy Nasdaq exchange. ®
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