NEW YORK (Reuters) - Shares of Cisco Systems Inc (CSCO.O) were down 6 percent on Tuesday after the network equipment maker said it would shut down most its U.S. and Canadian business for five days in as part of its previously announced plan to cut costs by more than $1 billion.
Cisco spokesman Terry Alberstein said in an email that the shutdown planned from December 29 through January 2 would exclude critical teams such as technical assistance, channel partner and customer product ordering services.
The company, which is seen as a bellwether for the technology sector, announced the cost-cutting target on November 5 when the company warned that revenue could fall as much as 10 percent in the current quarter as the economic downturn spreads from the United States to Europe and Asia.
Earlier Tuesday, UBS analyst Nikos Theodosopoulos had said in a research note that the company was planning a four-day shutdown.
“We believe it is prudent for Cisco’s management team to plan for cushion in the event of weaker-than-expected revenues,” said Theodosopoulos.
The analyst also said he thought Cisco was likely aiming for more than the planned $1 billion in cost cuts.
Alberstein declined to comment beyond his written statement.
Cisco shares were down 99 cents or at $15.41 on Nasdaq, weaker than the Nasdaq Composite index .IXIC, which was down 2.1 percent. Cisco shares have fallen more than 40 percent from the start of 2008.
Reporting by Sinead Carew; Editing by Brian Moss