Sun Microsystems reduces workforce by 18 percent

SUN Microsystems has resolved to reduce its workforce by 18 percent, in a restructuring exercise the company hopes will save up to US$800 million (R7 billion) a year.

The retrenchment, which will affect about 6 000 workers, is part of the networking computing technologies company’s cost-cutting measures, to be undertaken across its branches worldwide.

According to Bloomberg, the lay-offs, caused by an intensifying global economic meltdown, are expected to begin in the United States during the Sun’s fiscal third quarter.

The restructuring exercise will include a shake-up in the management of the troubled company.

NetworkWorld says two new business units will be formed, along with a new group within Sun’s Microsystems business.

Sun last month posted its second loss in the last three quarters, as its stock went down 77 percent for the year.

By ITNewsAfrica.com