3Com restructure claims 150 jobs

Organises client network product divisions into single unit after poor Q4 results

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

3Com has reorganised its client networks access products divisions in an attempt to revitalise the company's sales of network interface cards (NICs) and modems following their poor contribution to its latest quarterly results. The Networks Satan will create a Personal Connectivity Business Unit (PCBU), said CEO Eric Benhamou, and axe 150 jobs in the process. Some 150 other staff will be relocated elsewhere within the company. Essentially, the PCBU will try to sell DSL and cable modems to the company's installed base of analog modem customers. At the same time, it will push hard to interest users in home networking technologies, such a phone cable, wireless and radio frequency systems, for both domestic and business roles. 3Com's focus on the home networking market will centre on a series of products developed through its alliance with Microsoft. Microsoft's contribution is modem, printer and file sharing technology. It's also using the partnership to promote Universal Plug and Play, its would-be device connectivity standard. That will allow it to reduce both its dependance on and the operational overheads of its NIC and, particularly, analog modem lines. Indeed, it's from the modem side of the business that the majorioty of the 300 job cuts are coming. Both areas were highlighted by 3Com COO Bruce Chaflin as major contributors to the downturn in the company's Q4 1999 results, announced last month. These products accounted for half of the company's sales, but the money it made from those sales increased just one percentage point on Q3 98. Sales of its higher-end systems products increased 28 per cent. ®

Website security in corporate America

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story


Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.