Sun Microsystems to lay off 6,000 staff

In the latest staggering batch of redundancies in the technology sector, Sun Microsystems has announced that it is to cut between 5,000 and 6,000 jobs – around 18% of its workforce – over the next year.

The cuts will save an estimated $750 million a year, the company said, but will cost it between $500 million and $600 in the coming 12 months.

The company also announced some radical restructuring. Sun’s software division will be split into three units; one for programming languages and databases, one for its Solaris operating system and the third for ‘cloud computing’ systems. The head of its current software division Rich Green has resigned.

The announcement comes shortly after Sun revealed the $1.7 billion loss it made in its most recent financial quarter. The company’s share price currently places its total market capitalisation under the amount it holds in cash.

Read the Sun Microsystems statement here.

Further reading

Sun posts $1.7 billion loss

Sun quashes rumours of co-founder’s resignation Sun Microsystems has refuted reports that the company’s co-founder and star engineer Andreas von Bechtolsheim is resigning

Sun reveals the secrets of ‘commercial open source’ How the systems and hardware vendor aims to make money from ‘free’ software

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Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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