Sun Microsystems has added its name to the growing list of tech firms making
major job cuts, announcing that 6,000 employees will go as part of a major
restructuring of its software operation.
The cuts will affect around 18 per cent of Sun's employees, and result in a
reduction in the company's wage bill of between $700m (£468m) and $800m (£535m).
Sun also plans to rebuild its software operation by splitting the division
into three new units: application platform software; systems platforms; and
cloud computing and developer platforms.
Each of the new departments will have a special focus on advancing the
company's open source offerings.
"Today we have taken decisive action to align Sun's business with global
economic realities, and accelerate our delivery of key open source platform
innovations," said Sun chief executive Jonathan Schwartz.
The vendor has been warning of economic troubles since September, when it
highlighted slowing sales in its quarterly earnings report.
The cuts mark another dark chapter in what has already been a brutal season
for the technology sector.
Xerox,
Micron
and
Yahoo
have all had to make dramatic staff cuts, while retailer Circuit City had to
close hundreds of its stores prior to filing
for
bankruptcy protection.
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