3Com to merge units in cost-cutting effort

Friday June 07, 2002

SANTA CLARA – 3Com Corp. plans to merge its Business Connectivity Co. unit into its Business Networks Co. unit in an effort to increase efficiencies and reduce costs. 

The maker of computer-networking equipment said Thursday that upon completion of the changes on July 1, the Business Networks unit will have three operating divisions, each focused on a different class of products. 

The connectivity division will focus on NIC and PC card products; the personal systems division will cover technologies linking users to networks, and the LAN infrastructure division will include enterprise switching, voice systems, security and small business systems. 

3Com said the Business Connectivity Co. has largely marketed NICs and PC cards, a declining market segment as connection capability moves into silicon. As NIC/PC card revenue has fallen, it was no longer cost-effective to maintain a separate infrastructure.