Sun Microsystems to cut jobs

[OhioChick]

Source: IndiaTimes Infotech

2 May 2008, 1006 hrs IST

SAN JOSE: Santa Clara-based server and software maker, Sun Microsystems Inc, stunned investors on Thursday by reporting a loss in its third quarter, caused in part by sagging sales to US consumer-oriented companies that are putting off big-ticket spending for better times.

The company also revealed plans to jettison between 1,500 and 2,500 jobs as it tries to snap out of a sudden financial funk.

Wall Street expected Sun Microsystems Inc's global sales base to help it weather the US economic slowdown and turn a profit in the first three months of the year.

Sun's shares were quickly punished, dropping almost 15 per cent in after-hours trading.



Read more: http://infotech.indiatimes.com/articleshow/3003558.cms

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Snip~ "Sun executives were tightlipped on where jobs will be cut now but said many would likely be in the US."

Color Me Surprised.......

[OhioChick]

1. Sun Micro to cut up to 2,500 jobs

The US computer firm Sun Microsystems has reported an unexpected three-month loss and announced plans to cut between 1,500 and 2,500 jobs.

Its shares fell 15% in after-hours trading on the Nasdaq stock exchange.

Sun reported a net loss of $34m (£17m) compared with a profit of $67m in the same period of 2007.

It blamed costs relating to its takeover of the Swedish software firm MySQL as well as disappointing orders from US customers.

"I'm disappointed," said chief executive Jonathan Schwartz.

"Our third quarter was a challenging one in which US macroeconomic factors impacted our overall progress," he added.

The drop-off in orders was sharpest from the US government, retailers and telecoms firms.

The job cuts represent up to 7.5% of Sun's total workforce of 33,500.

http://news.bbc.co.uk/1/hi/business/7379324.stm

[gristy]

2. 7% of workforce seems like a lot