Chicago (IL) – Sun Microsystems confirmed yesterday
it will cut 1,500 more jobs this week. The announcement was not
unexpected since previous layoffs as part of broader restructuring efforts
had already resulted in 1,300 job cuts in January. A financial analyst
company, Wedge Partners, claims that up to 50 percent of Sun’s customer
staff may be affected with layoffs, thus reducing Sun’s ability to directly
sell its products and creating an increased reliance on channel partners.
did not provide an exact break-down of imminent layoffs, but said the
actual proportion is significantly lower, adding that layoffs will
affect all positions — including higher-ranked managerial teams. “Sun continues to make important choices to streamline operations
and align resources to best address market opportunity and position the
company for improved financial performance and long-term growth,” the company wrote in an email.
Sun first revealed
plans to shed up to 18 percent of its workforce — up to 6,000
employees — last November. Back then, the company said the purpose
of a nearly one-fifth reduction in staff was to reduce annual costs by
between $700 million and $800 million. The company may be also trying to improve
its bottom line ahead of the rumored IBM acquisition. As we previously
reported (Sun is beaming from IBM attention), the company’s stock value soared following IBM’s alleged $6.5 billion premium acquisition offer.
Sun makes a whole lot of sense for IBM, and the acquisition may solve a lot of IBM’s problems since the two
companies have complementary (if not overlapping) businesses.
IBM is allegedly deep-scanning Sun’s contracts and business metrics
before the acquisition is green-lighted. Neither company has confirmed
acquisition talks. Sun’s fiscal Q3 ended today and financial results
will be published April 28.
See Yahoo News.