Feeds

Sun to axe more jobs

3,700 and counting

Boost IT visibility and business value

More layoffs are on the way at Sun Microsystems. Despite its third consecutive profitable quarter, the Silicon Valley server giant will cut an unspecified number of jobs by the end of this year.

Early last week, according to a new filing with the Securities and Exchange Commission, Sun's board of directors approved a plan to "better align the company's resources with its strategic business objectives, including reducing its workforce." As it hands out severance pay, the company expects to spend between $100m and $150m on the plan "over the next several quarters".

On July 30, Sun announced profits of $329m for its fiscal fourth quarter, after posting a net loss of $310m during the same quarter last year. But just two days later, the board approved the new job cuts.

Since taking the helm in April of 2006, Sun CEO Jonathan Schwartz has already laid off over 3,700 workers, and it seems the company will continue with this strategy as it aims to boost profits yet again. In announcing its fourth quarter earnings during a conference call with industry analysts last week, the company said it planned to achieve operating margins of at least 8 per cent in the fourth quarter of 2008 and at least 10 per cent for fiscal year 2009.

The company's goal for the fourth quarter of this year was an operating margin of four per cent, and it significantly exceeded that goal, hitting 8.5 per cent.

Sun did not immediately respond to multiple requests for comment. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.