Sun Microsystems cuts 6,000 jobs
Saturday, November 15, 2008
California based Sun Microsystems yesterday announced that it was shedding 6,000 jobs, in a move that Jonathan Schwartz, CEO of Sun, said was designed to "align Sun's business with global economic realities."
The move will shrink Sun's workforce by 15-18%, according to a press release published by the company.
Sun have also stated that US$ 700 to $800 million dollars per year should be saved by the move, which will cost $500 to $600 million to implement over the next twelve months.
Rick Hanna, an equity analyst for Morningstar Inc, commented on the move. "They still have strong cash on the balance sheet, and they're still generating free cash flow, so they're not dead yet, but the patient is definitely on the respirator," he said.. "I can't imagine for a second the board would be satisfied with Sun's current performance. . . . What's happening with Sun at this point is figuring out how to maximize what's left."
Sun also announced yesterday that it will "accelerate our delivery of key open source platform innovations."
- "Sun Microsystems, fighting for survival, to lay off 18% of its workforce" — , November 15, 2008
- Press Release: "Sun Microsystems Aligns Business with Global Economic Climate and Amplifies Growth Opportunities Across Open Source Platforms" — , November 15, 2008