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News > Technology
3Com cuts jobs
February 26, 2001: 12:20 p.m. ET

Computer networking equipment maker launches restructuring plan
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NEW YORK (CNNfn) - 3Com Corp. said Monday it will cut 1,200 jobs to help deal with a downturn in the U.S. economy and "turmoil" in the telecommunications industry.

3Com, a leading supplier of hardware that lets computers communicate with each other across networks, is making the cuts -- about 10 percent of its work force -- as part of a restructuring plan announced in December.

graphic3Com executives said they hoped the plan would trim as much as $250 million in annual costs and result in the company turning an operating profit by the first quarter of its next fiscal year.

The Santa Clara, Calif.-based company said it might cut more jobs and is still working on ways to cut other costs, including "discretionary" and property costs.

A January report in Crain's Chicago Business, citing unnamed sources, said 3Com could cut as much as 20 percent of its total work force. 3Com would not comment on that report.

3Com has already said it plans to spin off its Carrier Network Business, which sells products to telecommunications and Internet service providers, as a separate company called CommWorks Corp.

Shares of 3Com (COMS: Research, Estimates) were up 25 cents to $9.28, well off their 52-week high of $119.75.  graphic




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