Cisco to shut down for 4 days to cut expenses

2008-11-28 16:19:36 (GMT) (Caymanmama.com - Business News)

Cisco Systems Inc. plans to close most it it’s North American offices for 4 days over the holidays

Denver, Colorado (CaymanMama.com) — As part of a strategy to cut nearly $1 billion in expenses during the current fiscal year, Cisco Systems Inc. plans to close most it it’s North American offices for 4 days over the holidays.

On Tuesday, the company announced their cost-cutting plan, though the they did not indicate how may employees would be affected or exactly how much revenue they would save from the closures.

According to the Associated Press, “The shares fell 6 percent on fears that the move shows demand for Cisco’s computer networking equipment remains sluggish, forcing the company’s first mandatory shutdown in over a decade. The San Jose, Calif.-based company is forecasting that sales will fall 5 percent to 10 percent in the current quarter as the credit crisis strangles spending by corporations.”

Traditionally, Silicon Valley companies tend to close during the holidays due to slow business and a high volume of employees who are out on vacation. Now, they have taken to extending their closures or reinstating them to save money.

In addition to Cisco, Hewlett-Packard Co. is planning to close their offices for two weeks instead of one while Apple Inc. and Adobe Systems Inc. are asking employees to take time off.

The Cisco’s closures will begin on Dec. 29 and last until Jan. 2. They company reasons that the shut down would occur anyway due to New Year’s Day, a federal holiday when the company’s offices would be closed anyway.

Cisco to shut down for 4 days to cut expenses

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