|
3Com to cut jobs
|
 |
January 15, 2001: 11:44 a.m. ET
Networking company expected to make cuts to work force next month
|
NEW YORK (CNNfn) - As part of a plan by which it hopes to return to profitability within the next two quarters, 3Com Corp. is planning to lay off next month a portion of its work force of 11,500.
3Com (COMS: Research, Estimates), a leading supplier of hardware that lets computers communicate with each other across networks, is making the cuts as part of a restructuring plan which executives said will cut as much as $250 million in annual costs.
A 3Com spokesman on Monday told CNNfn that the company had not yet determined the extent of the cuts and that the company expects to have specific figures by the end of February.
| |
 THE PATH TO PROFITABILITY
|
|
| |
|
3Com is planning job cuts as part of a restructuring plan aimed at cutting $250 million in expenses and returning to profitability in the fiscal second-quarter.
|
|
|
The spokesman would not comment on a report in Monday's edition of Crain's Chicago Business, which, citing unnamed sources, said the company could cut as much as 20 percent of its total work force.
"At this time we have not determined how many people will be affected by a reduction in work force. Right now we are assessing the situation," the spokesman said.
When 3Com reported its fiscal second-quarter results last month, executives also unveiled a broad restructuring plan under which the company's Carrier Network Business, which sells products to telecommunications and Internet service providers, will be spun off as a separate company called CommWorks Corp.
Executives said the move will enable 3Com to cut annual costs by as much as $250 million and should result in the company turning an operating profit by the first quarter of its next fiscal year.
In connection with the spinoff of CommWorks, 3Com said it expects to take a one-time charge of between $40 million and $60 million.
At the close of trading Friday, 3Com shares stood at $10.38. 
|
|
|
|
|
|
3Com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
