Sun to Cut More than 5,000 Jobs

9 Comments

[qi:011] Sun Microsystems (s java) today announced that it is going to cut between 15 and 18 percent of its work force. That’s somewhere between 5,000 and 6,000 jobs. The company plans to cut its annual costs by between $600 million and $800 million. It blamed the cuts on the global economic downturn. But I think that like many other companies, Sun is using the downturn as an excuse for what were pre-existing problems, foretold by its stock price, which seems to be in an unending swoon. The cuts also come with the rearrangement of executive responsibilities, prompting Larry Dignan to write: “Sun is a company mired in what seems like a never-ending transition.”

Here are some of the changes:

* Anil Gadre, currently Chief Marketing Officer, will now head up the Application Platform Software business, which would include Java, MySQL and other such stuff.
* John Fowler will now lead Systems Platforms, which includes some of its new storage and analytics products.
* Dave Douglas will head up company’s Cloud Computing & Developer Platforms units, including the Network.com efforts.

Will these help? I am sure they can’t hurt. Or as someone recently said — leaky oil tankers take a long time to sink, so there is enough time to patch stuff up.

9 Comments

kguy

joke is if you have a job in sun, it is your second job!!!

this layoff is a joke. even in normal times (economic doing good times), sun can layoff 15% easy. same with yahoo. same with citi.

each of these can cut 50% of its bloated staff and still function normally.

DataStronghold

Sun has had been having a hard time for years, so I completely agree with your statement. Companies like this relied on low priced financing to fund themselves. Now that it is expensive to borrow they can longer fund their bloated operations. This will be a tough time for the economy but in the end it will filter out the un healthy companies.

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