3Com Corp. will hand out pink slips to 10 per cent of its global workforce over the next two fiscal quarters, the company announced Thursday.
According to a company statement, the job cuts are a direct result of weakening market demand for networking equipment and are partly due to the closing of the sale of its CommWorks unit to UTStarcom Inc. back in May.
3Com President and CEO, Bruce Claflin said the CommWorks sale will enable the company to function as a single operating entity and allow for a more competitive cost structure.
Although 3Com has not disclosed how many Canadian employees will be included in the cuts, the layoffs will affect 3Com employees globally, while the bulk of the reduction will be in the company’s Santa Clara, Calif. location.
3Com Canada General Manager Nick Tidd said all areas of the business are affected by Thursday’s announcement, but added that 3Com will 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 layoff cloud, 3Com said it still plans go ahead with some major product announcements concerning its recent joint venture with China-based Huawei Technologies Co. Ltd. next week.
The Mississauga, Ont.-based company said it will not provide a details on number or locations affected until the end of this quarter.
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