3Com To Outsource Manufacturing, Cut 1,000 Jobs

Over the next six months, 3Com plans to transition its manufacturing to two partners: Singapore-based Flextronics, and Jabil Circuit, St. Petersburg, Fla.

The company also said it has established a Taiwan Design Center, expected to be operational in its fiscal second quarter ending November 2003, which will design and manufacture low-end, standardized volume products.

"These actions further enhance 3Com's ability to bring competitive and comprehensive networking solutions to the enterprise market," said Bruce Claflin, president and CEO, 3Com, Marlborough, Mass., in a statement.

The majority of the job cuts will come from 3Com's manufacturing and supply chain operations, including the plant closure, which is expected to occur by the end of February. Some product development jobs will also be cut, the company said.

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The company employs about 3,000 people.

Shares of 3Com traded down 21 cents at $5.74 Wednesday morning.