3Com to cut 1,200 jobs due to US economic downturn
Internet networking company 3Com Corp says it is to cut 1,200 jobs due to the slowdown in the US economy .
The company hopes its cost-cutting strategy will help it regain profitability next year.
Bruce Claflin, 3Com president and chief executive, says he announced a global cost reduction initiative in December in light of the US economic downturn and turmoil in the telecommunications industry.
"3Com will focus all of its resources on work critical to market leadership and superior financial returns," Claflin says.
3Com expects this move to be the first step towards improving cost-effectiveness and efficiency in operations.
The company says it will continue to focus on cost reductions in all four areas outlined in its restructuring plan.
These are employment, discretionary costs, product costs and savings in property and equipment.
Founded in 1979, 3Com created the market for Ethernet cards, which plug into the back of personal computers and allowed them to communicate via local networks.
At their peak, the cards were a $1bn annual business.
