3Com Carves Into Modem Unit

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Vendor 3Com Corp. said it will slash 170 jobs from its consumer broadband
division -- a unit that makes and sells high-speed cable and
digital-subscriber-line modems.

That move will affect 145 full-time and 25 part-time employees, a company
spokesperson confirmed.

Among factors, 3Com cited eroding prices and margins for its consumer
broadband-modem business. Prices on stand-alone cable-modems have dropped on the
low end to about $99 each. And forthcoming internal computer-controlled cable
modems are expected to go for about one-half of that.

The 3Com spokesperson said the move will impact about 1.5 percent of the
company's entire work force of 10,600. The majority of those cuts will impact
employees at its Rolling Meadows, Ill., campus.

Earlier this week, 3Com said restructuring plans would trim $250 million from
its consumer businesses, noting that its broadband unit would participate in
those plans. The latest cuts will save 3Com $18 million annually, the company
said.

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