3Com locals spared from restructure and layoffs

In a move to restructure and realign its business, 3Com has announced it is combining three business units to create the Personal Connectivity Business Unit.

The company also announced 150 marketing and engineering staff will be laid off as a result of the reorganisation.

Gerhard Rumpff, 3Com Australia's managing director, described the change as a "pure back-end restructure", which would only affect organisation in the US. He said the restructure would have no impact on local staffing numbers or company organisation.

"The way we go to market is very much reliant on how we see the market," Rumpff said.

The reorganisation pulls key areas of 3Com together into one clear division to address problems associated with "declining" product markets, he said.

In the restructure, 3Com is combining its former client access, new business initiatives and home networking divisions into the Personal Connectivity unit to eliminate redundancies in marketing and development, reduce expenses, and better focus on high-growth areas such as broadband, home networking and wireless products, said Jef Graham, senior vice president and general manager of the new division.

The Personal Connectivity unit will have three subdivisions: a business connectivity group targeted at corporations, telecommunications companies and cable companies; a residential connectivity group targeted at home consumers; and an OEM (original equipment manufacturer) group serving PC manufacturers.

The analog modem area had the greatest redundancies, so about 150 employees in that product group are being reassigned to other technologies, including the wireless area, Graham said. However, according to Graham, 150 more employees will be laid off by this week.

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