3Com shaves 500 more jobs

Decentralises

3Com is to reduce its workforce by a further 500 by transferring certain corporate functions to its operating units.

Critical services such as accounting and IT will remain with corporate but corporate marketing, human resources and finance decision support will largely transfer to 3Com's remaining divisions.

The move is part of 3Com's restructuring around three units: CommWorks, which focuses on the telco market; a business networks company; and a business connectivity company, which supplies NICs and the like.

In the past year 3Com has shed 6,000 jobs, around half its workforce, and exited several unprofitable business areas, including the fledgling Internet appliance market and the consumer broadband-modem business. It now employs 5,900 staff.

In December, firm reports that it has achieved "positive cash flow" from its remaining operations and that it was on track to reaching profitability by the end of the financial year.

The firm is looking to achieve "scale advantages through third-party partnerships" and improve its operating process in order to drive its costs further down. However it left the door open for "selective hiring" in areas which support its growth. ®

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