3Com to outsource manufacturing, cuts jobs

  • Joris Evers (IDG News Service)
  • 11 September, 2003 11:58

3Com will outsource all of its manufacturing in an effort to further reduce costs, resulting in up to 1000 job cuts.

Over the next six months, 3Com will move its manufacturing, distribution and related activities for enterprise networking products to Flextronics International of Singapore and Jabil Circuit of Florida.

3Com has also established a “Taiwan Design Centre” for designing and manufacturing low-end, standardised volume products.

The Taiwanese facility would be operational by the end of November and fully staffed with 3Com and partner personnel by the end of May, 3Com said.

As part of the outsourcing actions, 3Com would close its manufacturing facility in Dublin by the end of February, it said.

The moves would affect about 1000 3Com employees worldwide, the majority in the company's manufacturing and supply chain operations. 3Com will keep development on technologies it sees as growth markets in-house. This includes voice-over-IP Internet Protocol, network security and its new LAN technology called expandable resilient networking, or XRN.

Outsourcing is the latest in a series of actions taken by 3Com to improve efficiency and cut costs as it works to return to profitability.

The company said in June it would lay off 10 per cent of its staff.

3Com also moved its offices from California to Massachusetts.