Cisco plans 4 day shutdown to save dough

Cisco is reportedly planning to shut down for 4 days at the end of the year for the first time in its history.

According to UBS analyst Nikos Theodosopoulos (Techmeme):

Cisco plans a 4 day shutdown of facilities for the first time ever in the company’s history. The company indicated the shutdown is part of the $1.0B savings plan for FY09 operating expenses, as the company works to achieve savings vs. its internal budget. In particular, this will help lower payroll and facility expenses.

Theodosopoulos adds that demand remains soft and Cisco is probably aiming to save more than the $1 billion it outlined on its last earnings call.

Cisco's move echoes similar shutdowns sprinkled around Silicon Valley and elsewhere. For instance, HP extended its shutdown period from one week to two this year. In the dot-com bust many companies shut down that final week since you could save more on energy, pay and other expenses. When business got better many companies kept the shutdown in place.