3Com outsources manufacturing and cuts jobs

Network hardware maker 3Com will outsource all of its manufacturing in an effort to reduce costs further, resulting in up to...

Network hardware maker 3Com will outsource all of its manufacturing in an effort to reduce costs further, resulting in up to 1,000 job losses.

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 in Florida.

3Com also established a "Taiwan Design Center" for designing and manufacturing low-end, standardised volume products. The Taiwanese facility will be operational by the end of November and fully staffed with 3Com personnel and partner personnel by the end of next May.

As part of the outsourcing actions, 3Com will close its manufacturing facility in Dublin by the end of February. The moves will affect about 1,000 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, network security and its new Lan technology, called expandable resilient networking (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. In June the company said it would lay off a tenth of its staff. It also moved its offices from Santa Clara, California, to Marlborough, Massachusetts.

At the end of May, 3Com employed 3,300 worldwide.

Joris Evers writes for IDG News Service

Read more on IT outsourcing

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close