MarketWatch: Sun Microsystems to eliminate up to 6,000 jobs

[marmar]

Sun Microsystems to eliminate up to 6,000 jobs
High-tech giant says job cuts could save as much as $800 million per year
By Rex Crum, MarketWatch



SAN FRANCISCO (MarketWatch) -- In a move highlighting how much the global financial crisis has spread into the technology sector, Sun Microsystems Inc. said Friday it will cut as many as 6,000 jobs as part of a new effort to lower its expenses amid declining sales to its corporate customer base.

Sun made the announcement before the market opened, saying that the cut of 5,000 to 6,000 jobs will save the computer server and software developer about $800 million annually.

Chief Executive Jonathan Schwartz said the moves were necessary "to align Sun's business with global economic realities," and help the company roll out its various open-source software platforms.

"It's a step in the right direction," said Brent Bracelin, an analyst who covers Sun for Pacific Crest Securities. "It's going to take much more work to make them profitable, but I think it's a good first step."

Sun shares ended the day with a gain of 4 cents to close at $4.12.

As part of its latest restructuring plans, Sun said it will incur one-time expenses of $500 million to $600 million over the next 12 months in connection with the layoffs. As much as $450 million is expected to be charged in its current 2009 fiscal year results.

Investors shrugged their shoulders at Sun's layoff plans. The company's stock was down 4 cents at $4.04 in early Friday trade. However, the stock has fallen almost 80% since the company completed a 1-for-4 reverse stock split on Nov. 12, 2007. .......(more)

The complete piece is at: http://www.marketwatch.com/news/story/Sun-Microsystems-lay-off-many/story.aspx?guid=%7B26E52A47%2D4A68%2D4263%2D86DD%2DF7696D2C0299%7D&dist=hplatest

[thunder rising]

1. I wonder if this is a cover for Sun exiting the US on it's way to India?