Beleaguered Sun Forced to Lay Off 3,000 More Employees

By Chris Preimesberger  |  Posted 2009-10-20 Print this article Print

In an 8-K filing with the SEC, Sun says its board approved a new strategic plan that it said would better align the company's resources with its strategic business objectives, a plan that includes laying off 3,000 workers during the next year.

Beleaguered Sun Microsystems revealed Oct. 20 that it must trim about 3,000 jobs over the next 12 months, due largely to the delay in closing its planned merger with Oracle, which is currently under review by the European Commission.

The EC, which monitors commercial competition in the 27 countries that comprise the European Union, started due diligence on the deal in August and has said it expects to have a decision by Nov. 19 on whether to approve the deal.

Meanwhile, Oracle founder and CEO Larry Ellison has said Sun is losing about $100 million per month as the two companies wait for the EC to make its decision.

In an 8-K filing with the U.S. Securities and Exchange Commission, Sun reported that its board approved a new plan "to better align the company's resources with its strategic business objectives," which includes laying off 3,000 workers during the next year.

The company also said in the filing it would need to incur charges amounting to between $75 million and $125 million over the next several quarters to maintain its restructuring plan.

In November 2008, Sun announced that it planned to reduce its global work force by 5,000 to 6,000 employees-or 15 to 18 percent-in 2009. Many of those jobs were vacated by attrition, a Sun source told eWEEK at the time.

Sun, based in Santa Clara, Calif., currently has about 29,000 full-time employees. Despite its respected products and intellectual property, the company has been plagued with red ink for most of the last decade.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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