According to reports, Cisco Systems is planning a mass jobs cull with around 14,000 jobs in danger - nearly 20 per cent of its global workforce.
Cisco, the world's biggest networking equipment company, is expected to announce more details of any potential cuts in the next few weeks a part of an ongoing transition to a more software and cloud-orientated strategy.
Technology news site CRN was the first publication to break the news, with a source familiar with the matter saying: "They need different skill sets for the software-defined future than they used to have. In theory the addressable market could be higher and margins richer, but it will take some time to make this transition."
As of 30 April, Cisco had around 70,000 employees globally and less than a year ago opened new offices in London, bringing its UK employee headcount up to around 7,000.
Following a decrease in spending by telecom carriers and enterprises on network switches and routers - Cisco's primary business - the company has been investing in more in data analytics and cloud-based tools for data centres.
But it's not the only company to have announced significant job cuts over the last 12 months or so. Towards the end of 2015 HP revealed that it would be axing up to 30,000 employees and in April Intel announced it would be saying goodbye to 11 per cent of its workforce as part of a global restructuring plan.
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