Sun Microsystems to cut up to 5000 jobs

Sun Microsystems Inc, which has struggled in recent years to turn a profit and boost revenue, said it would cut up to 5,000 jobs, or 13 percent of its workforce, over the next six months. Since the implosion of the dot-com and telecommunications investment bubbles in 2000 and 2001, Sun has suffered more than rivals IBM and Dell as the market moved to cheaper servers using Intel-compatible chips and the Linux operating system.

Some analysts had called for cuts of 12,000 or more among Sun's 37,500 staff. Sun said all its moves should yield annual savings of $480 million to $590 million. Sun has cut 11,000 jobs since the downturn, excluding those announced on Wednesday, but that was not enough for Wall Street.

channelnewsasia.com :

Sun Microsystems said it will cut 4,000 to 5,000 jobs in the next six months and sell some facilities in a restructuring to save the troubled maker of computer servers up to 590 million dollars a year. Sun said that in addition to cutting the jobs over the next six months, it would sell its campus in Newark, California, and its leased facilities in Sunnyvale, California.

The job cuts of between 11 and 13 percent of its workforce will leave Sun with between 32,500 and 33,500 employees. The cuts come a little more than a month after Jonathan Schwartz took over as chief executive of Sun from Scott McNealy, who remains chairman, to turn the company around as it competes with rivals such as Hewlett-Packard Co.

(2006-06-01 08:37:23 SGT) [Biz] Permalink

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