3Com Dropping 30 Percent of Employees
3Com announced Monday that it will be downsizing, leaving 3,000 employees without jobs. That number is 30 percent of the entire 3Com work-force. This move sparks hopes that profitability will return by fiscal 2002. Lately, many tech companies have had to face this decision due to poor profit returns.
The beginning of job cuts involving 3Com began back in February, when the company announced that 10 percent of its telecommunications division would be let go. This decision proved to be an asset to the company's total profit returns. Also, certain product lines such as its Audrey and Kerbango appliances have been discontinued.
3Com continues to evaluate methods of cutting property and plant costs, while lowering the cost of product design. By June 4, 3Com plans to have three set product divisions: CommWorks, a network services provider; Business Connectivity, which will create products for business computers; and Business Networks, 3Com's network infrastructure products.