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Sun layoffs continue as part of restructuring

Sun layoffs continue as part of restructuring

Sun laid off workers in the U.S., Canada, Europe and Asia on Friday as part of a belt tightening expected to claim up to 5,000 jobs.

Sun Microsystems laid off workers in the US, Canada, Europe and Asia on Friday as part of belt tightening that is expected to claim up to 5000 jobs at the beleaguered company.

Sun would not say how many jobs were eliminated, but the cuts went across all staff levels, including vice-presidents and directors.

Sun CEO, Jonathan Schwartz, implemented a restructuring plan after taking over from co-founder, Scott McNealy, in April. The cuts, which include selling real estate, are part of a plan to save between $US480 million and $US590 million annually, the company said.

Investors should see the results from the cuts by July 2007, Sun said. The company is trying to bring its costs in line with its income and has set a goal for operating income of 4 per cent of revenue by then, with that figure rising to 10 per cent over the long term. In the quarter that ended June 30, Sun had an operating loss of 8.75 per cent of its revenue.

Sun's recent earnings announcement did have a bright spot. Net revenue increased to $US3.8 billion from $US2.9 billion from the previous year's quarter, boosted by its services division and Solaris 10 OS sales.


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