Friday 14 November 2008

Sun to cut up to 6,000 workers, 18% of staff

Sun Microsystems Inc says it will cut up to 6,000 of its workers, or 18 percent of its global staff.

Sun also says its software chief, Rich Green, has resigned.

The company has fallen into a deep slump as sales of its high-end servers have collapsed.

The Santa Clara, Calif.-based company said Friday the job cuts will include between 5,000 and 6,000 employees over the next year.

The company added that it expects to incur total charges in the range of $500 to $600 million over the next twelve months.

It says the cuts will save $700 million to $800 million annually and it expects to begin realizing cost savings in Q3.

Sun says about $375 to $450 million of charges will be incurred within its current fiscal year 2009 and restructuring plan is aimed at reducing costs by about $700 to $800 million anually.

Source: EconomicTimes

Posted by Harsh at 07:25

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