Sun Microsystems is cutting 1080 jobs, or 3 per cent of its worldwide workforce, which stood at 36,068 at the end of June.
In a statement, Sun said the cuts will affect certain business units, but declined to comment further.
The company said the layoffs are needed for it to meet its fiscal 2004 goals of revenue growth, improving profitability and increasing shareholder value while continuing to invest in the development of technologies that solve complex network-computing problems for its customers.
"This strategic realignment is an ongoing business practice that allows us to allocate resources to meet the highest priorities of the business," Sun said.
The company said most of the changes will occur during the current quarter, although some units will still have layoffs in its second and third quarters.
"Sun remains committed to driving operational efficiency and in doing so must continually review, monitor and respond to changing business priorities by evaluating organisation, workforce, projects, product strategies and cost structures," the company said in the statement.
This is the third round of layoffs for Sun since October 2001, when it reduced its workforce by 3900. Last November, Sun cut another 4400 jobs.