Sun layoffs hit hundreds in US

Canada and Latin America losses too

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Posted in Hardware, 24th June 2005 17:55 GMT

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Sun Microsystems has laid off several hundred workers in the US, Canada and Latin America, as it continues to try and cut costs, El Reg can confirm.

Sources this week told The Register that engineering and sales staffers were particularly hard hit by the most recent cuts. Sun declined to provide specific details on what areas were affected or exactly how many cuts were made but did confirm some layoffs.

"In conjunction with fiscal 2006 planning, budgets and resource alignment, some Sun business units/functions implemented small rebalancing activities this week," Sun said in a statement. "This was not an across the board reduction, rather a part of a long-term effort to re-balance workforce and ensure resources are aligned closely with critical business needs."

Since 2004, Sun has been axing various groups one team at time. It waved goodbye to 200 UK server staffers in May of last year, then ploncked a few more heads in September and has been reported to cleave off more software and server staffers since.

The company has been working hard to reduce its breakeven point in the hopes of tying together a few quarters of profits. Despite a fall in revenue, Sun management is often quick to point out its outstanding track record at generating cash - something which has allowed the company to make numerous acquisitions, including the $3bn buy of StorageTek. ®