Chicago, June 13: Network equipment maker 3Com on Thursday said it will cut 10 per cent of its work force over the next two quarters to reduce costs amid weak demand for its products. 3Com said the decision will mostly affect employment in the United States, Europe, the Middle East and Africa. Within the United States, the largest impact will be in the company's headquarters in Santa Clara, California.
3Com employed 3,900 people at the end of its fiscal third quarter, which ended in February.
3Com's stock was up four cents at $5 in early trading on the Nasdaq.
"(C)ontinued weakness in demand requires we improve the company's overall cost structure," 3Com president and chief executive Bruce Claflin said in a statement.
He added the company will continue to do selective hiring in areas that contribute to its service of large corporate customers. Bureau Report