3Com confirms job cuts
Will decide next month who's to be axed
3Com has set the end of February as deadline to decide which of its 11,500 workers are for the chop after warning yesterday it intends to job cuts this quarter.
The plan is part of a major cost-cutting exercise. The job cuts will save the company $200-225 million a year, though it will have to take a one-off hit of $46-60 million to cover the cost of the redundancies.
3Com's economy drive won't only hit jobs. A company spokesman told AP yesterday that it is looking to trim travel expenses, purchasing costs and manufacturing expenditure. The company is even considering selling off plant, he admitted.
The redundancies are not entirely unexpected - 3Com warned late last year it might take such action. That warning came after the company announced a lower-than-expected loss of $52.4 million for its second quarter of fiscal 2001 Sales for the period were $789.5 million. ®