Sun Microsystems is to close its manufacturing operations in the Linlithgow, Scotland, site with about 130 people losing their jobs.

There are about 600 permanent positions at the plant and 300 contract jobs. The Linlithgow site's other operations, such as Sun's remote monitoring centre, a solution center, an IT networks operations center and an executive briefing center are not affected.

The cuts constitute 15-17 percent of Sun's Scottish workforce and the jobs will disappear by the end of Sun's current financial year, in June, 2009. The closure is part of Sun's latest response to poor business results and the recession. All Sun's own global manufacturing is going to be consolidated to a single site at Hillsboro, Oregon. This means that now excess production capacity and its costs can be eliminated.

Sun is continuing to decide where cost-savings can be made and more such news may follow in due course. ®

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