Cisco (CSCO) Lower On Word of Work Shutdown

Shares of Cisco Systems (Nasdaq: CSCO) are under pressure today on reports the networking company will have its first ever work stoppage.

According to various reports, Cisco will have a five day work shutdown in U.S. and Canada at the end of the year to save more than $1 billion. A UBS analyst said Cisco is facing soft end-market demand and the move is prudent to give the company a cushion in the event of weaker than expected revenues.

Cisco is planning the shutdown from December 29 through January 2. The work shutdown will exclude critical teams such as technical assistance, channel partner and customer product ordering services.

Shares of Cisco are down 5% today to $15.56, just above its 52-week low of $14.20.

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