Cisco stock plunged Thursday, a day after it announced plans to lay off 4,000 employees, or 5 percent of its work force. The company said it will take a charge for the restructuring in the fiscal first quarter.
Shares of the world's biggest network equipment maker were down more than 8 percent in premarket trading Thursday. What's the stock doing now? (Click here for the latest quote.)
A Cisco executive, Chris Dedicoat, defended the job cuts Thursday, saying the company had to try to predict where the growth opportunities were and where workers were needed. "We have to make sure we have the right people with the right skill sets in the right place," the chief executive for Europe, Middle East, Africa and Russia told CNBC.
(Read more: Cisco defends layoffs, sees weak southern Europe)
The layoff news came after Cisco reported fiscal fourth-quarter earnings and revenue that edged past analysts' expectations, helped by continued strength in its enterprise business.
Goldman Sachs on Thursday recommended that investors "use the pullback to buy the stock."
Net income rose to $2.27 billion, or 42 cents per share, from $1.92 billion, or 36 cents per share, in the year-ago quarter.
Excluding items, earnings increased to 52 cents per share from 47 cents per share a year earlier.
Revenue climbed 6.2 percent to $12.42 billion from $11.69 billion.