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Sun Microsystems cuts up to 6,000 jobs
New York (AFP) Nov 14, 2008 Sun Microsystems Inc. announced on Friday it was cutting up to 6,000 jobs as the global economic crisis drives down demand for its computer servers. Sun said it was cutting 15 to 18 percent of its global workforce, or 5,000 to 6,000 jobs, to "align its cost model with the global economic climate." A company spokeswoman said the majority of the layoffs, the second round of job cuts at the Santa Clara, California, firm since May, will be in the United States. The restructuring, which will involve charges of some 500 to 600 million dollars over the next 12 months, should result in savings of some 700 to 800 million dollars a year, Sun said. Sun also announced the departure of Rich Green, head of its software division, and a reorganization to allow the company to "accelerate the introduction of compelling open source innovations." "Today, we have taken decisive actions to align Sun's business with global economic realities and accelerate our delivery of key open source platform innovations," Sun chief executive Jonathan Schwartz said in a statement. The firm, publisher of Java and other software products, said the software division was being reorganized into three business groups: application platform software, systems platforms, and cloud computing and developer platforms. "Sun's new organizational alignment is a recognition of the comprehensive role software plays in the company's growth strategy," the company said. The layoffs come two weeks after Sun Microsystems reported a quarterly net loss of 1.66 billion dollars compared with a net profit of 89 million dollars during the corresponding period a year earlier. Schwartz acknowledged at the time that falling demand for high-end computer servers was impacting on the company's balance sheet. The job cuts at Sun were the latest bout of bad news for the technology sector and came just two days after Intel Corp., the world's largest maker of computer chips, cuts its fourth-quarter revenue projections. Market intelligence firm IDC reported Wednesday that worldwide spending on information technology is expected to grow just 2.6 percent in 2009 because of the financial crisis, down from its pre-crisis forecast of 5.9 percent growth. Sun Microsystems' share price has fallen by nearly 80 percent over the past year and the company was trading at 4.06 dollars in New York on Friday, a loss of 0.25 percent since the opening bell. Share This Article With Planet Earth
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China says its economic fundamentals are good
Beijing (AFP) Nov 14, 2008China said Friday the fundamentals of its economy remained strong amid the global financial crisis and it was confident of maintaining fast growth. |
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