Fears For UK Staff As Cisco Systems 'Prepares To Cut 5,500 Jobs'

Cisco Systems (HKSE: 4333.HK - news) is reportedly planning to lay off up to 5,500 employees, in what would be the largest job cull in the company's history.

The California-based technology giant, which is shifting its focus from hardware to software, employs more than 70,000 people worldwide.

It is said to require "different skill sets" for this "software-defined future" as it vies to increase market share and boost profit margins.

Cisco has an estimated 5,000 staff in 14 towns and cities across the UK, but it is not known how many British employees will be affected by the cuts.

The company is expected to formally announce the plans to reduce its headcount by 7% in the coming weeks, and according to the technology news website CRN, many workers have been offered early retirement packages in advance.=

An earlier report suggested the firm may cut as many as 14,000 jobs.

Despite the cutbacks, recent announcements appear to show that Cisco remains committed to its UK operations, which began nearly 25 years ago.

Last summer, the network equipment manufacturer said it was going to invest more than $1bn in UK digital education and skills projects over three to five years.

And last December, Cisco opened new offices in central London for 200 workers in the company's cloud technology division - expressing an intent to grow its operations in the capital threefold by next year.

A Cisco spokeswoman told Sky News the company does not comment on speculation.

Other tech giants have also announced drastic job cuts in light of the PC industry's decline.

Microsoft (Euronext: MSF.NX - news) initiated one of the largest layoffs in the history of the tech sector in July 2014 when it confirmed plans to slash 18,000 jobs.

Last September, HP (Frankfurt: 7HP.F - news) warned that it expects to cut 33,000 jobs by 2018.

And in April, Intel (Euronext: INCO.NX - news) announced plans to slash 12,000 jobs worldwide - 11% of its workforce.