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Sun Microsystems to Lay Off 350

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 (s JAVA) 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 (s fsl) 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.

7 Responses to “Sun Microsystems to Lay Off 350”

  1. 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.

  2. 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.