Sun to Reduce Work Force, Again

Sun to Reduce Work Force, Again

Written By
Deb Perelman
Deb Perelman
Aug 8, 2007
1 minute read
eWeek content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Sun Microsystems will spend up to $150 million in the remainder of the year in severance pay, the Santa Clara based maker of servers and storage gear said in a SEC regulatory filing Aug. 7.

Though Suns filing did not specify the number of cuts, some analysts estimate the slash-count at over 1,000. The company expects to absorb most of the charges in the first half of the fiscal year ending June 30, 2008.

On July 30, Sun reported a return to profit in the second and third quarters after five consecutive quarterly losses.

By revamping its product line—selling servers powered by AMD and Intel chips—it is hoping to stage a recovery.

Shortly after current CEO Jonathan Schwartz took over after co-founder Scott McNealys departure as chief executive one year ago, Sun cut approximately 5,000 workers through layoffs and attrition in the United States, Canada, Europe and Asia as part of an ongoing plan to improve profits. 950 of these jobs were slated to be in the U.S.

Check out eWEEK.coms Careers Center for the latest news, analysis and commentary on careers for IT professionals.

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.