Sun Microsystems to Lay Off 6,000 Employees

It appears that the worldwide low economy is continuing to make victims among major IT industry companies, as Sun Microsystems has just announced that it plans to lay off 15 to 18 percent of its global workforce, as part of a restructuring plan. People that are to leave the company include the company's executive vice president of software operations, Mr. Rich Green.

 

As part of the company's just announced restructuring program, between 5,000 and 6,000 employees, which make up for 18 percent of the company's global workforce, are expected to lose their jobs. The Santa Clara, California-based company expects to save between $700 million to $800 million annually, as a direct result of the broader restructuring plan. In addition to the work force reduction, Sun is also said to be expecting total charges in the range of $500 million to $600 million over the next 12 months in direct relation with the plan, which, as already noted, will also include Mr. Rich Green leaving the company.

 

On October 30, Sun released the details of its financial results for the fiscal quarter that ended on September 28, revealing a net loss of $1.68 billion and a seven percent year-over-year drop in revenue, to $2.29 billion. The company's shares were down to about 2 percent in the pre-market trade, after closing at $4.08 on the Nasdaq.

 

Aside from laying off a considerable part of its workforce, the company's restructuring plan also includes the realignment of its software organization. Consequently, it will be split in three divisions, namely: Application Platform Software, run by Executive Vice President Anil Gadre; Systems Platforms, run by Executive Vice President John Fowler; and Cloud Computing and Developer Platforms, run by Senior Vice President Dave Douglas. The company's focus will shift to "boosting open-source momentum and growing new sectors of the market who view technology as a competitive weapon."

 

The recent financial struggles of the company have led to rumors according to which Sun could either sell some key assets or even go on sale in its entirety.