& cplSiteName &

Cisco's Time Off

Craig Matsumoto

2:40 PM -- Word's gotten around that Cisco Systems Inc. (Nasdaq: CSCO) plans to shut down for the week after Christmas.

It's the first such shutdown ever for Cisco, according to UBS Investment Bank analyst Nikos Theodosopoulos, whom Reuters is crediting with spreading the news today.

But shutdowns are common around Silicon Valley. The semiconductor equipment business -- including companies like Applied Materials Inc. (Nasdaq: AMAT) -- seems to have forced time-off stretches every couple of years. There, you're talking about an industry that sells big expensive robots to chip foundries, the kind of equipment that's prone to lumpy revenues and long dry spells; I've always thought of their shutdowns as not only a cost-saving measure, but a concession to the fact that no one's going to be ordering anything during the holidays.

Cisco is a bit different, with a more steady flow of orders -- but of course, that flow has dried up a little. (See Cisco Predicts Q2 Plunge.) If moves like a shutdown -- or canceling the annual sales meeting -- can help Cisco reach its $1 billion in cuts without a layoff, then I don't think you'll hear many complaints.

— Craig Matsumoto, West Coast Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Craig's A-List
If there isn't a master plan behind Google's creation of Kubernetes, maybe there ought to be.
Already replaced as CEO, John Chambers is fully detaching as he plans to step down as Cisco chairman, truly ending his time as the face and voice of the company.
The network must be automated. And Light Reading must write about it.
Comcast joins Google in asking for a flexible-rate optical standard, rather than 400G or terabit, but that's easier said than done
Cisco, Juniper and other more traditional Interop speakers might get overshadowed by the forces of virtualization
Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Multiband Microwave Provides High Capacity & High Reliability for 5G Transport
By Don Frey, Principal Analyst, Transport & Routing, Ovum
5G + Cloud + AI + Ecosystem, Opening New World of Video
By Samuel Chen, President, Cloud & Data Center Marketing, Huawei
All Partner Perspectives