Sun Undergoing Another Round of Layoffs
As many as 1,000 Sun employees could lose their jobs, though Sun will still plow on with Java, hardware and utility computing plans. Some speculate that Fujitsu could acquire Sun.Sun Microsystems is undergoing another round of layoffs, this time eliminating up to 1.000 positions, sources said. According to reports, Sun let more than 200 workers go in Colorado as part of the 1,000, and some estimates indicate the company plans to let as many as 2,500 employees go altogether. According to sources, Sun officials announced the need to cut so deeply during its third quarter earnings call in May. For its third quarter, Sun showed a net loss of $34 million, as compared to a net income of $67 million for the third quarter of 2007. However, some of the third-quarter loss can be attributed to Sun's $1 billion acquisition of MySQL.
Sun, which has been the home of some of the brightest minds in the technology industry, has struggled to right its financial ship since its glory days of the dot-com bubble.
"A combined Fujitsu and Sun looks appealing on paper. You'd end up with a company that could really compete quite handily against the massive shops at IBM and HP on a global scale. Fujitsu could pick up some of the best-designed server and storage products going, while also broadening its software portfolio dramatically. Fujitsu would also gain a much stronger presence in the US, while the combined company would be even stronger in Europe (Fujitsu Siemens) and Asia."