Sun Microsystems on Friday announced a restructuring of the company that will include laying off up to 18 percent of its work force, reports The New York Times.
Cutting up to 6,000 jobs will save the company $700 million to $800 million a year, but the company plans to take up to $600 million in charges in the next 12 months. Though the cuts will be worldwide, the U.S. layoffs are expected in Sun’s fiscal third quarter, according to Bloomberg.
The Times says the structuring includes a shakeup in management of the troubled company. NetworkWorld says two new business units will be formed, along with a new group within Sun’s Systems business.
Sun last month posted its second loss in three quarters. Its stock is down 77 percent for the year.
Posted by Susan Hall on November 14, 2008 at 10:34 am in itbusinessedge.com
courtesy:SUSAN HALL &IT BUSINESS EDGE
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