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Summary:

Sun Microsystems plans to lay off about 350 employees in January. The computer systems maker said in a WARN letter that it would lay off 352 people between January 5 and January 25 across the U.S. citing a “need to reduce overall spending in its fiscal year 2009.”

Sun Microsystems plans to lay off about 350 employees at the start of next year, according to a letter filed under the Worker Adjustment and Retraining Notification Act. The computer systems maker said in its letter that it would lay off 352 people across the U.S between Jan. 5 and Jan. 25, citing a “need to reduce overall spending” in fiscal 2009. Late last month, Sun reported a $1.7 billion loss for the first quarter of its fiscal 2009 year.

Since May, Sun has laid off about 1,500 employees, according to its filings with the SEC. As of the end of June, the company employed about 34,900 people. In addition to Sun, Freescale Semiconductor also filed a WARN letter saying it plans to lay off 138 employees in Austin, Texas, while hosting provider Verio said it plans to lay off 71 people in Dallas.

  1. [...] wireline chip maker cut 15 percent of its work force. ST-NXP Wireless has cut its workforce by 500. Elsewhere Freescale and Verio also made some cuts. All these companies are reacting to the broader market [...]

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  2. A 1% force reduction is hardly a belt tightening.

    This is how slow but deadly bleed outs happen.

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  3. [...] is announcing some layoffs today but like one of the commenters on the post – this is just a slow bleed out from a company who [...]

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  4. This is pure baloney. Just had a look at the pdf file and the dates look suspicious to me(mentions a RIF in 2009 and the dates are January 2008).

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  5. I think the date error is just that, an error. This paper is a routine government filing, where this kind of boo-boo happens frequently.

    As far as belt-tightening is concerned, there was a whopping one-time charge, and without that, the loss was $0.09 per share, or about $66M. This is probably about the same as the cost savings they will get from a 350-person layoff.

    However, I agree that this is how bleed-outs happen. Sun has not effectively shrunk their workforce size at all over the last few years.

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  6. I can tell you for sure that there is/was a massive layoff happening and a lot more than 350 people. A wave of layoffs occurred last wednesday across the company. Numbers reported are well under what has already been cut. Not to mention there was a reduction in force last quarter as well. I can’t say that the people being cut were well thought out cuts either.

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  7. [...] ‘Sun Microsystems to Lay Off 350′ (GigaOM) [...]

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