Sun Slashes 5,000 Jobs, 950 in U.S.

By Deborah Rothberg  |  Posted 2006-08-07 Print this article Print

Sun Microsystems lays off approximately 5,000 workers in the U.S., Canada, Europe and Asia as part of an ongoing plan to improve profits.

After boasting fiscal fourth-quarter revenue gains the week prior, Sun Microsystems laid off approximately 5,000 workers in the United States, Canada, Europe and Asia Aug. 4 as part of an ongoing plan to improve profits.

The job cuts, affecting 950 employees in the United States and 300 in Colorado alone, were across all levels, including vice presidents and directors, according to reports.

Sun's plan to cut 13 percent of its work force, or 5,000 jobs, was announced May 31. It was the first big move by new CEO Jonathan Schwartz, who took over for co-founder and longtime CEO Scott McNealy in May.

Schwartz said his first task was to complete a full review of the Santa Clara, Calif., company's operations and make moves to bring Sun back to financial health.

Officials expect the layoffs to save the company between $480 million and $590 million annually, with profits expected to improve as a result by July 2007.

Sun continued its top-down reorganization in late July by naming a new vice president of storage marketing and business operations and reconfiguring the group's storage division in an effort to further align the group with other divisions.

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