Citing Slowdown, 3Com Lays Off 1,200
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Following through on a cost-cutting initiative unveiled in December, Santa Clara, Calif.-based 3Com Corp. Monday slashed 1,200 jobs, about 10 percent of its workforce.
The network-equipment maker said the lay-offs will take place across-the-board, affecting both full-time regular employees and the alternative work force.
"In light of the U.S. economic downturn and turmoil in the telecommunications industry, I announced in December a global cost reduction initiative," said Bruce Claflin, 3Com president and chief executive officer. "3Com will focus all of its resources on critical to market leadership and superior financial returns."
In December, Claflin said the cost reduction measures would save the company between $200 million and $225 million annually.
The company also said it would continue to report milestones towards its cost cutting goals.