3Com Corporation plans to outsource all of its manufacturing and realign its product development and supply chain capabilities as part an effort to reduce costs. The move is expected to affect 1,000 of the company’s employees.
Over the next six months, 3Com will outsource all its direct manufacturing, distribution and related activities for its enterprise networking products between two partners, Singapore-based Flextronics and Florida-based Jabil Circuit. Flextronics will also assume responsibility for 3Com’s global distribution from its regional hubs.
3Com has also established a Taiwan Design Centre (TDC) which will be responsible for the design and manufacture of low-end, standardised volume products and staffed by 3Com employees and Original Design Manufacturer (ODM) partner employees.
The company will close its manufacturing facility in Dublin in Ireland by the end of February 2004.