Struggling 3Com plans big lay off

Large lay-offs are expected next month at the struggling 3Com, which has been

trying to re-invent itself in the computer communications gear market. The San

Jose company said it wants to shed some $200 million a year in operating

expenses and much of that will come in the form of cutting workers.

It will be Silicon Valley's biggest lay-off in almost a decade. The company

said it will decide by the end of February how many job cuts will be necessary.

3Com employs 11,500 people worldwide. "We're not taking this decision

lightly. The company is in the process of determining where the savings can be

achieved," said spokesman Mike MeCey.

3Com will take a charge of $40 million to $60 million in this quarter to

finance the restructuring. The company has not made a profit since it spun off

the Palm group. CEO Bruce Claflin said last month that 3Com hopes to get back

into the black in the first quarter of fiscal 2002, which ends this August.