Sun Microsystems to cut 5,000 to 6,000 jobs

November 14, 2008 | Dean Takahashi | Comments |

Sun Microsystems said today it’s going to cut 5,000 to 6,000 jobs to align its costs to deal with the weak global economy. It’s another sign of how weak the economy has become, and how Sun is still struggling to find its footing after years of cutbacks.

The cuts are likely to fall heavily on an already reeling Silicon Valley. Cuts like this show just how bad the companies — particularly already battered ones such as Sun — are expecting the economic storm to last. The Santa Clara, Calif.-based server maker said the cuts add up to 15 – 18 percent of its work force. As part of the move, the company will reorganize its business groups.

The reorganization will place more emphasis on open-source platforms and the fastest growing sections of the technology market. Sun said the new structure would recognize the importance of software, such as Sun’s recently acquired MySQL open-source database software.

Sun expects to cut costs by $700 – $800 million annually. Total charges will be in the range of $500 – $600 million over the next twelve months. Anil Gadre will move from chief marketing officer to head of the Application Platform Software division, which includes Java and MySQL. Systems Platforms will be headed by John Fowler and include Sun’s Solaris operating system, virtualization software, and other system-oriented software. In the musical chairs, Sun’s current head of software Rich Green has chosen to leave the company.

And Dave Douglas will head a Cloud Computing & Developer Platform division, with cloud-based services including NetBeans and StarOffice.

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About the Author, Dean Takahashi

Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.

  • I feel bad that the employees have to suffer for a company that has lacked a specific goal in it's business plan. Unfortunately SUN has been teetering for some time now. Hopefully they can use this as an opportunity to properly focus there business model and return to the glory this company originally had.
  • I hoped the people who are losing their jobs don’t get discouraged. This is a good time to explore being in business yourself.

    I want to point you to my new book, Entrepreneur Journeys (Volume One), which many discouraged people are using to get some positive momentum, inspiration, and encouragement, as well as learn the ropes of entrepreneurship if this way of life is new for you.
    Check it out: http://www.amazon.com/dp/1439206872

    Many great companies have been found during downturns and recessions. Many people have found their way into self-employment during difficult times.

    Do not give up hope.

    Sramana
    www.sramanamitra.com
  • One of my student working for a American company also lost his job. I hope that the economy of USA and the whole world will recover soon. So that our life will be better.
  • edhardy622
    British law student sues Abercrombie-Fitch for disability discrimination.
    http://www.abercrombieonsale.co.uk