News
Sun Microsystems To Reduce Work Force
Server and software maker Sun Microsystems Inc. plans to cut an unspecified number of jobs as part of a new restructuring plan, according to a regulatory filing Tuesday with the Securities and Exchange Commission.
Sun said it expects to incur total charges of about $100 million to $150 million over the next several quarters, primarily related to cash severance costs. The company expects to book most of the charges in the first half of the fiscal year ending June 30, 2008.
The Santa Clara, Calif.-based company did not disclose how many jobs would be cut.
Sun has been aggressively cutting costs since Jonathan Schwartz took over as chief executive in April 2006 from co-founder Scott McNealy.
In June 2006, Sun said it would slash 4,000 to 5,000 jobs within six months in an effort to return to consistent profitability.
Last month, Sun reported its third profitable quarter in a row, earning $329 million on revenue of $3.84 billion.
On Tuesday, Sun shares gained 4 cents to close at $5.