A day after San Jose networking giant Cisco Systems reported a nice bump in profit and sales, but said it would lay off 4,000 employees in a restructuring move, the company’s stock took a beating.
Cisco’s shares were down $1.79, or nearly 7 percent, in early trading Thursday.
That may partly reflect the overall stock market’s weakness. The Dow was down more than 1 percent in early trading. But it also appears to reflect investor concerns about Cisco’s prospects going forward. Within minutes of announcing its earnings and its layoff plans on Wednesday, Cisco’s stock price fell 10 percent in after-hours trading.