Sun Microsystems is to cut between 5,000 and 6,000 jobs as economic woes add to its troubles.
By Reuters, 17 Dec 2008 at 09:10
Sun Microsystems has said it will cut 5,000 to 6,000 jobs, as the economic crisis compounds the company's struggles with depressed demand for its high-end business computers.
It said the job cuts represent 15 to 18 per cent of its workforce, and are part of a broader restructuring plan it has undertaken in hopes of saving $700 million (£470 million) to $800 million annually.
The California-based company expects to incur total charges in the range of $500 million to $600 million over the next 12 months in connection with the plan, which also includes realigning its software division. Rich Green, who ran the software division, is leaving the company.
The company said its software business will be split into three divisions. Application Platform Software will run by executive vice president Anil Gadre, while Systems Platforms will be run by executive vice president John Fowler. The Cloud Computing and Developer Platforms are will be run by senior vice president Dave Douglas.
Many of Sun's problems preceded the current economic crisis. The company has been struggling since the internet bubble burst and demand for its computers dried up.
Shares of the company are down 98 per cent since 2000, the peak of the dot-com boom, and down around 77 per cent this year.
By Reuters, 17 Dec 2008 at 09:10
Sun Microsystems has said it will cut 5,000 to 6,000 jobs, as the economic crisis compounds the company's struggles with depressed demand for its high-end business computers.
It said the job cuts represent 15 to 18 per cent of its workforce, and are part of a broader restructuring plan it has undertaken in hopes of saving $700 million (£470 million) to $800 million annually.
The California-based company expects to incur total charges in the range of $500 million to $600 million over the next 12 months in connection with the plan, which also includes realigning its software division. Rich Green, who ran the software division, is leaving the company.
The company said its software business will be split into three divisions. Application Platform Software will run by executive vice president Anil Gadre, while Systems Platforms will be run by executive vice president John Fowler. The Cloud Computing and Developer Platforms are will be run by senior vice president Dave Douglas.
Many of Sun's problems preceded the current economic crisis. The company has been struggling since the internet bubble burst and demand for its computers dried up.
Shares of the company are down 98 per cent since 2000, the peak of the dot-com boom, and down around 77 per cent this year.
