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Adding a new chapter to its story of escalating layoffs begun one year ago, 3Com Corp. this week let go approximately 350 employees, primarily from its Business Connectivity Co.
3Com is “simplifying the structure of its global connectivity unit,” said Robert Glazier, company spokesman. The elimination of the BCC workers will bring the companys global headcount to approximately 5,050, he said.
In mid-January, the Santa Clara, Calif., company reorganized into three operating units–Business Networks Co., Business Connectivity Co. and CommWorks Corp.–and announced the layoff of 500 employees. The move built on an earlier restructuring plan unveiled last May, in which 3,000 employees were let go in addition to 1,200 who had lost their jobs in February. Another 1,000 employees were let go in September.
This weeks downsizing is “designed to drive high velocity into BCC,” Glazier said. The company is striving to achieve profitability by the fourth quarter of 2002.
The BCC unit specializes in PC cards aimed primarily at wireless connectivity. Other 3Com units, including Commworks, may also lose staff in the latest round of layoffs, but they would be minor compared with the layoffs at BCC, according to Glazier.