Sun Microsystems, 6000 job cuts and reorganises business

It seems that we only saw a part of the massive job cuts in the IT industry recently. Sun Microsystems released a statement for the press about their plans for adjusting to the "economical climate" and maximizing their incomes.

As it often occurs these days, the work force is the first that feels the crunch. Sun Microsystems plans to release 6000 workers. That is about 15-18% of their global workforce. Among those people is Rich Green, the Sun vice-president of software operations. Earlier this year, Sun cut 2500 people. Sun Microsystems recently filed a net loss of 1.7 billion dollars, and a drop of 7% each year.

The amount of money that Sun is going to save using the plan developed by the board of directors is between $700 and $800 million annually. Workforce cuts are integrated in that number by $500-$600 million.

The plan also includes some optimistic highlights, and aims that the company will target in the future. This should be achieved by forming two new business groups and a new group within Sun's existing systems business:

Application Platform Software - Will work on Sun's open source software for desktop, server and handheld devices, MySQL open source database products and GlassFish application server. In addition, this division will be responsible for Sun Learning services.

System Platforms - Will be lead by John Fowler, executive vice president. This will be the division responsible for Solaris, Virtualization (xVM and VirtualBox).

Cloud Computing & Developer Platforms - Responsible for implementing new technologies into all segments and following new trends. Dave Douglas, Senior Vice-president will be in charge of this group.

Report a problem with article
Previous Story

Video games: Where next?

Next Story

All My Books 1.4

12 Comments

Commenting is disabled on this article.

From my experience with Sun hardware, I'm not surprised they are not making a profit. It's all proprietry stuff that you can only get from Sun and it costs more than standard server hardware from Dell/HP/Fujitsu/IBM etc.

But I sympathise with anyone who gets made redundant as I was involved in the telecomms slump in 2001/2002, being made redundant from Nortel Networks. So I know it's not a nice thing to happen to anyone.

Not that I care for Suns products at all, especially that POS, JRE, but definitely not cool to see any job losses anywhere.

Which of these three groups is responsible for hardware? I heard a rumor they were exiting the hardware market and conforming to a pure software company.

Hmmmmm.........

Just hope it doesn't make their aftersales support any more useless. It already takes days / weeks to turn around urgent warranty calls on our Sun servers whereas HP turn around warranty stuff SAME DAY. And they cost less...

wouldnt all those job cuts just make the economy just worse

because of more people would be with less money because jobless state

It would make the economy worse, but the company will become more profitable, which is all they care about. It's up to the gov't to sort out the economy

Johnston said,
It would make the economy worse, but the company will become more profitable, which is all they care about. It's up to the gov't to sort out the economy

So according to your logic, its better for a company to go bankrupt than shed a few jobs.

Clue to the clueless - look at their profit - THEY HAVE MADE NO PROFIT!!!!!!!!!!!!!!!!!

kaiwai said,
So according to your logic, its better for a company to go bankrupt than shed a few jobs.

Clue to the clueless - look at their profit - THEY HAVE MADE NO PROFIT!!!!!!!!!!!!!!!!!

who am i suppose to know if i didn't ask

thealexweb said,
Fires or made redundant, there's a big difference.

You're right - but then again, using 'fired' apparently gets the head lines and traffic more than 'redundancy'.

Regarding the new structure - its good to see they've finally simplified it. Sun had the structure for a company the size of IBM, and SUN is most certainly not the size of IBM!