Sun Microsystems Announces Plans to Reduce Work Force

[karthikeyan]

Sun Microsystems revealed another planned round of job cuts looms on the horizon

According to a Securities and Exchange Commission regulatory filing completed earlier in the week, Sun Microsystems  plans to make job cuts while undergoing a restructuring plan.  The company will spend from $100 million up to $150 million over the next few quarters while eliminating more jobs.

The company already cut around 3,700 positions with layoffs and attrition after Jonathan Schwartz took over as CEO -- a number smaller than expected by analysts at the time.  Sun still employs almost 34,000 people worldwide.

It is unknown how many positions Sun will cut sometime before the next fiscal year ends.  William Shope, an analyst with J.P. Morgan Securities, estimates Sun will cut as many as 2,000 jobs this time around.  Shope's estimates mean Sun will be cutting around 6 percent of the company's total workforce.

"While we are encouraged by today's announcement, we await signs of more aggressive actions," said Shope.  "The magnitude of today's announcement is somewhat smaller than we would have hoped," he added.

The SEC filing also indicates Sun plans to eliminate one board position -- leaving 10 board members.  Board member Naomi Seligman resigned sometime last week, Sun said in a statement.

Source from:  dailytech