Feeds

Sun to axe more jobs

3,700 and counting

Build a business case: developing custom apps

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. ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?