Sun Microsystems plans to cut 3,000 jobs as its acquisition by Oracle remains on hold

Server manufacturer Sun Microsystems announced it will cut 3,000 jobs in the next year as European regulators take a closer look as software maker Oracle tries to finalize its acquisition of Sun.

The job reduction was listed in the company's latest filing with the U.S. Securities and Exchange Commission.  Sun has slashed thousands of jobs across the world over the past few years, attempting to reduce losses as its open source software and servers lose marketshare to competitors.

Oracle CEO Larry Ellison said Sun is losing nearly $100 million per month, and will continue to lose money as regulators wait to close the $7 billion deal.  Sun said it will have to suffer $75 million to $125 million charges each quarter if a deal isn't reached.  

The acquisition was welcomed by analysts, who note Oracle being able to fold Sun's software -- and struggling hardware business unit -- will give the company yet another tool to compete with IBM.

Even though the European regulators are still investigating the acquisition, California Gov. Arnold Schwarzenegger endorsed the deal, which he says could help spur technological innovation in the state.

EU regulators remain concerned a possible deal would give Oracle a monopoly, offering it an unfair advantage in the database software market that it already controls.  Reports indicate a final decision from regulators will be available by Sunday, November 19.

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