3Com announces 500 job losses

3Com today said it would trim about 500 jobs from its work force of 5,900, under a reorganization plan aimed at restoring profitability…

3Com today said it would trim about 500 jobs from its work force of 5,900, under a reorganization plan aimed at restoring profitability at the network equipment maker.

The Santa Clara, California-based company also said it would transfer selected corporate activities to its Business Networks, Business Connectivity and CommWorks operating units.

3Com said it would transfer some staff and responsibilities in corporate marketing, human resources and finance decision support to its operating units. Critical services such as accounting will be delivered as shared services.

The company said the initiatives are intended to help 3Com achieve its goal of reaching profitability by the end of its fourth quarter of fiscal 2002.

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3Com, a pioneer of the Ethernet networking standard, last saw profitability in the third quarter of fiscal 2000, which ended in February that year. Last year it launched a major restructuring to offset sagging revenues during the telecom downturn.