Nov. 14 (Bloomberg) — Sun Microsystems Inc. plans to cut as many as 6,000 jobs as the company tries to cope with plunging sales of server computers to financial firms, market-share losses to bigger competitors, and a spiraling stock price.
The reduction, which will eliminate as much as 18 percent of the staff, will shave $700 million to $800 million from annual expenses, Sun said today in an e-mailed statement. The moves will cost as much as $600 million in the next 12 months.
The Santa Clara, California-based company is cutting back in response to “global economic realities,” Chief Executive Officer Jonathan Schwartz said. Sun, the fourth-largest server maker, last month posted its second loss in three quarters and said its financial-services customers were curbing orders until they have more liquidity.
“We see the level of concern spreading around the world,” Schwartz said in a telephone interview. “Customers are saying, `I am in pain, and I need budget relief.”’ more