Sun Microsystems to cut up to 6,000 jobs
NEW YORK (Reuters) – Sun Microsystems Inc said on Friday it will cut 5,000 to 6,000 jobs, as the economic crisis compounds the company’s struggles with depressed demand for its high-end business computers.
It said the job cuts represent 15 to 18 percent of its workforce, and are part of a broader restructuring plan it has undertaken in hopes of saving $700 million to $800 million annually.
The Santa Clara, California-based company expects to incur total charges in the range of $500 million to $600 million over the next 12 months in connection with the plan, which also includes realigning its software division. Rich Green, who ran the software division, is leaving the company.
Shares of Sun were down about 2 percent in pre-market trade, after closing at $4.08 on the Nasdaq.
The company said its software business will be split into three divisions: Application Platform Software, run by Executive Vice President Anil Gadre; Systems Platforms, run by Executive Vice President John Fowler; and Cloud Computing and Developer Platforms, run by Senior Vice President Dave Douglas.
The moves come as the economic downturn is prompting deep job cuts across a range of industries, from technology to financial services to retail. U.S. jobless claims hit a 25-year high in September, according to recent government figures.
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