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Internet Sun's New CEO Plans to Not Cut Jobs
Michael Hoffman (Blog) - April 27, 2006 1:29 AM
Print E-mail del.icio.us 2 comment(s) - last by kaborka.. on Apr 27 at 2:44 PM
Analysts are curious to see if Schwartz will really be able to save Sun

As Jonathan Schwartz makes the transition to become the new CEO of Sun Microsystems, analysts predict that he will have to make job cuts to help turn the company around again.  Schwartz is vehemently against making job cuts -- but he may not have much of a choice later down the road.  Sun will spend the next several months studying and compiling a plan to review possible growth potential in several industries.  If layoffs are inevitable for the company, it is unknown how many job cuts will be made.  Many analysts believe that Sun is going to end up continuing to slide, regardless of who is controlling the company.  According to the San Jose Mercury News:

"Sun is a Unix-centric company, and the Unix market doesn't have a lot of growth in it,'' said Toni Sacconaghi, an analyst with Sanford Bernstein. "The core challenge of trying to grow the company meaningfully when the historical market that has generated the vast majority of your revenues is not growing, that's not going to change.''

Schwartz took over as CEO when Scott McNealy stepped down several days ago.  Some professionals within the industry are doubtful of Schwartz's capabilities in running the company, let alone return the company back to profitability.

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This article is over a month old, voting and posting comments is disabled
By kaborka on 4/27/2006 2:44:48 PM , Rating: 4
Great headline! I can see that Sun and Apple may be competitors, but let's hope it doesn't get physical ;p




why so negative?
By Quiksel on 4/27/2006 11:16:00 AM , Rating: 2
It's not ALL about UNIX. Sun has done very well with their AMD-based hardware, and while they probably make a ton more selling the SPARC-based stuff, they will always have a market competing with the x86-based machines (their pricepoints on the AMD stuff have been exceptional).

I hate to see CEO bashing and doubtfulness in his ability to run the company only days after his promotion. Sure, he has to prove himself, but for crying out loud, no need to rush to judgment and consider him unable to "turn the company around".

I applaud Sun for producing product that is not so Solaris-centric. It may be what really "turns the company around" once UNIX plays out.




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