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Computer-networking firm 3Com announces 3,000 additional layoffs By Scott Thurm THE WALL STREET JOURNAL May 7 — 3Com Corp. announced a second round of layoffs Monday, setting plans to cut the jobs of 3,000 workers, or 30% of its work force.

THE LAYOFFS ARE EXPECTED to help the Santa Clara, Calif., maker of computer-networking equipment meet its goal of cutting annual operating costs by $1 billion.

3Com announced 1,200 layoffs in February, as part of a plan it said would save $250 million annually. In March, 3Com announced an additional $250 million in cuts, from discontinuing two consumer products and scaling back a division that makes modems for high-speed Internet access. 3Com said jobs would be eliminated as a result of those reductions, but has never specified a number, beyond 170 jobs at a factory in Illinois. The prior cuts left 3Com with a work force of roughly 10,000, including temporary and contract employees.

The layoffs are part of 3Com’s cost-cutting efforts, which also target discretionary expenses and product-development costs, as well as more efficient use of 3Com offices, factories and equipment.

3Com has been hit hard by the sharp decline in spending in telecommunications gear, which also has prompted layoffs at industry giants such as Cisco Systems Inc. and Nortel Networks Corp. For its fiscal third quarter ended March 2, 3Com reported a $246 million loss and a 45% decline in revenue from a year earlier.

-- Anonymous, May 07, 2001