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.
3Com said the lay-offs are a first step to those savings, and it will
continue to focus on reducing costs in four areas: employment, discretionary
costs, product costs and plant/property and equipment.
The company also said it would continue to report milestones towards its
cost cutting goals.
