August 3, 2006 5:54 PM PDT

Sun layoff hits hundreds

Sun Microsystems notified hundreds of employees Thursday that they'll be losing their jobs, a second phase in a plan to cut 4,000 to 5,000 workers.

About 950 employees were notified in the United States, and approximately the same number elsewhere in the world, Sun spokeswoman Stephanie Hess said. The cuts spanned a range of Sun operations, she said.

The first wave of cuts took place in June, and the overall layoff will be finished by the end of June 2007, the end of Sun's first full fiscal year with new Chief Executive Jonathan Schwartz at the helm.

Sun's last quarter was unprofitable in part because of charges associated with the layoffs, but the company reported revenue of $3.8 billion, more than the $3.6 billion Wall Street analysts expected.

Schwartz's promotion and the job cuts led UBS Warburg analyst Benjamin Reitzes to suggest on Thursday that Sun has the same ingredients for a turnaround that Xerox had earlier in the decade.

"Many aspects of the potential turnaround seem familiar," he said in a report. "Both have large, sticky customer bases, high market share, hidden assets, bloated cost structure and solid cash flow potential...We believe shares represent a compelling value."

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Why do we need to raise the h-1b cap, when so many are being laid off?
This is just another example of why we shouldn't be talking about raising the h-1b cap.

These people need to find jobs, and the unemployment rate needs to fall, before there is any talk of raising the h-1b cap.

Companies are only hiring foreign Engineers under the h-1b to assist them in outsourcing jobs. The h-1b cap started the engineering outsourcing boom, and it promotes it.

I know, I have seen it first hand. I know several engineers who went back to India to start and India divisions for the companies that hired them under h-1b.
Posted by Jake Leone (143 comments )
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lol
Because Republicans are Stupid, and we got an idiot in the White House, like father like son.

That's why.
Posted by rmiecznik (224 comments )
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Re: Wy do we need to raise the h-1b cap when so many are being laid off?
I'd have to agree with you. When you see numbers like this, it smacks of nothing more than greed and lies when you hear people saying we don't have the talent we need in this country.

And if there is a lack of talent (i.e. - CS graduates), it's because large corporations have driven us there by making jobs in IT next to worthless.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com
Posted by chuck_whealton (521 comments )
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