Enterasys Networks ( ETS) shareholders have approved a plan to do a 1-for-8 reverse stock split.

The reverse split will take effect at the close of trading Friday. Shareholders will receive one share of Enterasys common stock for every eight shares they currently own, and cash payments will be made in lieu of fractional shares to the extent that an individual's holdings are not evenly divisible by eight.

On Wednesday, Enterasys shares fell 2 cents to $1.24.