Sun shocks showgoers with layoffs

1,000 culled

Putting a big damper on its user conference, Sun Microsystems has confirmed that it will layoff close to 1,000 workers.

Sun is looking for most of the cuts to take place by the end of September, reducing its workforce to around 35,000. The company said the layoffs are in "targeted areas" and aimed at improving profitability.

Rumors of the cuts may have pushed Sun to make the announcement this week, during the Sun Network show. It's a bit of a blow to morale for the axe to come down during the company's flagship conference.

Financial analysts have long pushed Sun to reduce its workforce. The company laid off 4,000 employees back in October of 2001 and then another 4,000 in 2002. Sun's revenue is about two-thirds of what it once was during the dot-com boom.

The company has been hovering around profitability for a couple of quarters, and the cuts should give it an extra nudge toward the black. ®

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