Update: Cisco said Wednesday that it will lay off 5,500 employees, or 7 percent of its 74,000 employees. That's less than the 14,000 predicted this morning, but still shows a company desperate to adapt to changes in business technology.

Original story: Cisco Systems is reportedly considering shedding its global workforce by nearly 20 percent with the lose of up to 14,000 jobs.

According to multiple rumours, it's been claimed that the network kit giant is preparing to announce cuts to between 9,000 and 14,000 employees within the next few weeks, while early retirement packages are apparently already being offered to many staff.

It comes as Cisco is expected to report its fourth quarter financial results on Wednesday.

According to CRN, the job losses will result from the company's decision to pivot from being a hardware maker to a software-defined networking firm.

"They need different skill sets for the software-defined future than they used to have," an anonymous source told CRN. "In theory the addressable market could be higher and margins richer, but it will take some time to make this transition."

At present, Cisco employs 73,104 people around the world. If the rumours are true, the job cuts would be the biggest bloodletting in its 32-year existence. It laid off 6,000 employees in August 2014, 4,000 in 2013, 1,300 the year before that, and 6,500 in 2011.

Cisco declined to comment on this story.