Computer network equipment maker 3Com announced an across-the-board reduction of 3000 jobs, or 30 per cent of its workforce, as the company aims to cut annual operating costs by $1bn.
Reductions will be made across most of the company's worldwide operations which include finance, manufacturing, research and development and human resources. 3Com will trim its staff to 7000 over several quarters, with about 25 per cent of the cuts involving contract workers, a spokesman said.
The moves are in addition to the 1200 jobs the company eliminated in February and the 170 it shed in March. 3Com reported a pro forma net loss in its third fiscal quarter, which ended 2 March, of $122.8m.
The plan also includes evaluating possibilities to save money in product design, plant, equipment and property. The company has said it plans to reorganise its business units to become more focused on its core products and to build better customer relations.
Chief executive Bruce Claflin said: "This announcement is a necessary step. Our cost efforts are more important than ever given the softness we have seen in demand, both in past quarters as well as the current quarter."
On the same day, PC maker Dell Computer said it would eliminate 3000 to 4000 jobs during the next two quarters as the company resizes its work force and streamlines its operations.
According to Dell, reductions will occur at all organizational levels. The layoffs will take place through consolidating sales and marketing departments, eliminating management layers and sharing internal support resources. Dell added that manufacturing facilities in some instances will also be consolidated.
In addition, the company said that affected employees are eligible for competitive severance packages and extensive career counselling and outplacement assistance.
Dell said that while it would meet its previous targets for first-quarter sales and earnings per share, the company would remain cautious on the balance of the year.
J1043+2408 was observed for more than 10 years, and its radio light curve exhibited a periodic signal repeating in about 563 days
Success of Unity's test flight means Virgin Galactic is now close to taking its first paying tourist into space
V3 puts the pro-level football GPS tracker through its paces, and asks if it's more than a gimmick
Finding refutes many earlier studies that suggest that galaxies don't have much dark matter at the time of their birth