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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