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.

Featured

  • Microsoft Offers Support Extensions for Exchange 2016 and 2019

    Microsoft has introduced a paid Extended Security Update (ESU) program for on-premises Exchange Server 2016 and 2019, offering a crucial safety cushion as both versions near their Oct. 14, 2025 end-of-support date.

  • An image of planes flying around a globe

    2025 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss.

  • Notebook

    Microsoft Centers AI, Security and Partner Dogfooding at MCAPS

    Microsoft's second annual MCAPS for Partners event took place Tuesday, delivering a volley of updates and directives for its partners for fiscal 2026.

  • Microsoft Layoffs: AI Is the Obvious Elephant in the Room

    As Microsoft doubles down on an $80 billion bet on AI this fiscal year, its workforce reductions are drawing scrutiny over whether AI's ascent is quietly reshaping its human capital strategy, even as official messaging avoids drawing a direct line.