Sun Microsystems will lay off close to 11 per cent of its workforce as the company continues to be punished by a slowdown in technology spending.
Sun last week reported revenue of $US2.7 billion for its first fiscal quarter, which ended on September 29. This marks a 4 per cent drop from the same quarter a year ago when Sun pulled in $US2.9 billion in revenue.
Sun plans to reduce its workforce from its current level of almost 39,000 workers. Reports issued earlier from Merrill Lynch & Co and Sanford C. Bernstein & Co had indicated that Sun could announce layoffs of up to 8,000 people, or 20 per cent of its workforce.