DailyTech - Sun Microsystems Announces Plans to Reduce Work Force

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IT Sun Microsystems Announces Plans to Reduce Work Force
Michael Hoffman (Blog) - August 10, 2007 7:05 PM

10 comment(s) - last by crystal clear.. on Aug 14 at 9:05 AM

Jonathan Schwartz (Source: Sun Microsystems)

Sun Microsystems revealed another planned round of job cuts looms on the horizon

According to a Securities and Exchange Commission regulatory filing completed earlier in the week, Sun Microsystems plans to make job cuts while undergoing a restructuring plan. The company will spend from $100 million up to $150 million over the next few quarters while eliminating more jobs.

The company already cut around 3,700 positions with layoffs and attrition after Jonathan Schwartz took over as CEO -- a number smaller than expected by analysts at the time. Sun still employs almost 34,000 people worldwide.

It is unknown how many positions Sun will cut sometime before the next fiscal year ends. William Shope, an analyst with J.P. Morgan Securities, estimates Sun will cut as many as 2,000 jobs this time around. Shope's estimates mean Sun will be cutting around 6 percent of the company's total workforce.

"While we are encouraged by today's announcement, we await signs of more aggressive actions," said Shope. "The magnitude of today's announcement is somewhat smaller than we would have hoped," he added.

The SEC filing also indicates Sun plans to eliminate one board position -- leaving 10 board members. Board member Naomi Seligman resigned sometime last week, Sun said in a statement.

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It's happening again...

By dude on 8/11/2007 2:52:20 AM , Rating: 2

This is what happens when you think you're on top and the top falls on you.

Sun thought it was full of itself and now it's paying dearly. It's server market is crumbling to cheaply made x86 servers.

And that gaudy looking guy is so awful!

RE: It's happening again...

By MrScary on 8/11/2007 7:17:20 AM , Rating: 2

I agree I worked for Sun as a contractor. They are in horrible shape internally when you walk around and wonder what the freak does that guy do and you ask him and he doesn't even know what he does, you know you have problems. Sun cannot even support its own software or hardware their support on the East and West coast is a travesty. What was funny is this joker of a CIO would send out 3 emails within 15 minutes because he just could not seem to get across what he was saying. Maybe Sun should start getting rid of the lack of personality, morbidly mindless and realize that they themselves are their own worst enemy..

And umm thats all I got ta say bout dat.. gosh I wasted that much time on them.. Sun is going down its just a matter of time.

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RE: It's happening again...

By Screwballl on 8/11/2007 11:14:10 AM , Rating: 2

They will be bought up by MS or some other company that will do all kinds of restructuring and keep them lean and in the black... you don't see companies like this just dying

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RE: It's happening again...

By James Holden on 8/11/2007 7:24:22 PM , Rating: 2

SGI?

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No choice

By crystal clear on 8/12/2007 7:43:02 AM , Rating: 2

Intel/IBM & others have done the same & continue to do so.

Nothing new-this is a industry wide issue-

"job cuts & cost cuts".

Got to be competitive to survive !

RE: No choice

By TomZ on 8/12/2007 10:13:34 PM , Rating: 2

It would also be helpful if Sun would get a clue. Cost cutting is about optimizing your financial results, but trying to live all these years off the Microsoft settlement without having a real business plan is no way to be successful!

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