Cisco Systems Inc., the biggest maker of computer networking equipment, said it will cut about 310 jobs at its headquarters in San Jose, Calif.

Cisco is trying to shift from a reliance on revenue from high-cost proprietary equipment—which some customers are turning away from—to software and services. The company, No. 23 in the B2B E-Commerce 300, has more than 73,000 employees, according to data compiled by Bloomberg.

“Cisco regularly evaluates its business and will always make the changes necessary to effectively manage our portfolio and drive the most value for our customers and shareholders,” the company said in a statement. “As a result, this can mean realigning some areas so that we can invest in others such as security, data center/cloud and networking.”

CEO Chuck Robbins, who assumed the top job in July 2015, has struggled to fire up sales as the industry shifts to computing in the cloud—remote data centers that provide services over the internet. Owners of such facilities like Amazon.com Inc.’s Amazon Web Services are increasingly building their own hardware and replacing traditional suppliers of servers, storage and networking. That leaves fewer purchases of internet routers and related technology products that companies use to connect their technology systems to the internet.

In response, Robbins is trying to make Cisco’s products do more for its customers by adding software management capabilities and stand-alone services provided over the internet. Much of that effort is coming through a string of acquisitions, such as the August announcement of its $320 million purchase of Springpath Inc., a provider of software used in data centers

Cisco and Springpath have worked together since early last year to develop the Cisco HyperFlex data storage and computing platform. Software and subscription deferred revenue is now more than $5 billion, Robbins said during the company’s last earnings presentation. That represents a gain of 50% from the same period a year earlier.

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