In what is still an unconfirmed development, sources close to the company have reported to the popular technology news site CRN that Cisco Systems Inc will be laying off approximately 14,000 workers. That number represents about 20 percent of their global workforce.
Cisco is a giant maker of network equipment.
“As we’ve met with investors in recent weeks, we’ve picked up on concerns that Cisco may be looking to reduce headcount in the not-too-distant future,” Jefferies analyst said.
If the story is true, then the development will be the second largest high tech layoff announced in 2016. Last April Intel Corp said it was reducing its own workforce by 12,000, an 11 percent decrease in employees.
Cisco is faced with a severe slowing in purchases by telecom carriers and other businesses who purchase network switches and routers, Cisco’s main business. To combat this decline, they have been building up their wireless security and data-center businesses.