3Com is to cut 10% of its global workforce over the next two financial quarters.
The company said the job cuts were a direct result of weakening market demand for networking equipment and also partly due to the closing of the sale of its CommWorks unit to UTStarcom in May.
3Com president and chief executive officer, Bruce Claflin said the CommWorks sale would enable the company to function as a single operating entity and allow for a more competitive cost structure.
The layoffs will affect 3Com employees globally, with most of the cuts from the US offices.
3Com Canada general manager Nick Tidd said all areas of the business are affected by the announcement, but added that 3Com would continue to conduct selective hiring in areas that contribute to its strategy including expanding its field resources to help its distribution partners drive sales of 3Com voice and data networking offerings.
Despite the layoffs, 3Com said it still plans go ahead with some major product announcements concerning its recent joint venture with Huawei Technologies next week.
Carly Suppa writes for ITWorldCanada.com