3Com cutting another 3,000 Jobs.

  05/07/2001 9:35:25 AM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

Buyer of failed US Robotics the modem maker finds itself in big trouble.
  3Com Corp. (COMS.O) on Monday said it would cut its work force by 3,000 people, or 30 percent, as the computer network equipment maker tries to return to profitability. "Our cost (-cutting) efforts are more important than ever, given the softness we have seen in demand, both in past quarters as well as the current quarter,'' Bruce Claflin, 3Com's chief executive officer, said in a statement.

  In March, 3Com announced a program to cut costs by $1 billion. Network equipment makers have struggled in recent months amid growing inventories and weaker demand for electronics. 3Com said it would cut its total staff to 7,000 from 10,000 employees. Reductions will be made across most of the company's operations.

  3Com isn't the only one in the network equipment market being hurt, Cisco has also seen similar job cuts and marketshare loss, as well as Intel, 3Com isn't alone in this market facing added competition from the likes of LinkSys, and several other Optics players.

  The cuts will be a major contributor in the company's efforts to return to profitability by fiscal 2002, 3Com said in a release.

  In February, 3Com said it would cut 10 percent of its work force, or 1,200 jobs, amid what it called "turmoil'' in the telecommunications industry.

  The company is also evaluating ways to cut property and plant costs, as well as lowering the cost of product design.

  In April, 3Com announced it would form three independent operating units by June 4. The units are CommWorks, which will serve network services providers; Business Connectivity, which will make products for business computers; and Business Networks, which will make network infrastructure products.

  3Com isn't alone, but it's sure that they can't keep their previous market share with the added competition from the likes of Intel, LinkSys and other Network Equipment manufacturers.

  One thing 3Com was slow to the draw on was consumer and entry level business broadband equipment like DSL Modems and Routers. LinkSys introduced it's Broadband Router/Firewall, with many other companies following suit like Intel, and Efficent Networks, and even RCA have introduced Broadband modems. Where was 3Com?

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