August 7, 2007 8:05 AM PDT

Sun to cut jobs

Sun Microsystems will cut its workforce in the second half of the year as part of a restructuring plan, according to a regulatory filing the company made Tuesday.

The server giant expects to incur charges of $100 million to $150 million over the next several quarters, largely as a result of the job cuts. That move comes after Sun posted a fiscal fourth-quarter profit on July 30, marking its third consecutive quarter of profitability after a string of losses.

Sun's board of directors approved the job cuts last week as part of a plan to "better align the company's resources with its strategic business objectives," according to the Tuesday filing with the Securities and Exchange Commission.

A Sun representative did not immediately have an estimate of the number of jobs that will be cut.

When the company announced profitability in its fiscal third quarter, it warned that revenue was softer than had been expected.

But in the company's latest quarter, which ended in June, Sun matched Wall Street expectations on the revenue front and handily beat earnings expectations.

During a conference call last week related to earnings, Sun CEO Jonathan Schwartz said he expected the company to generate revenue growth in the "low to mid single-digits on a year-over-year basis" for fiscal 2008, according to transcripts from the call.

"Based on the timing of product introductions, we expect revenue growth to be a bit higher in the second half of the year, relative to the first half," Schwartz said. "We expect gross margins to be in the range of 43 percent to 46 percent."

Two days after Sun reported its fourth-quarter results, however, Sun's board approved the job cuts. It's not immediately clear whether any new information came to light during those two days that may have prompted the board to approve the job cuts in order to meet the newly set expectations.

Sun currently has 34,219 employees, according to a company representative.

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9 comments

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Meanwhile in India
Meanwhile in India, Sun is hiring ...

<a class="jive-link-external" href="http://in.sun.com/aboutsun/employment/ojp/index.html" target="_newWindow">http://in.sun.com/aboutsun/employment/ojp/index.html</a>
Posted by DecliningUSDollar (56 comments )
Reply Link Flag
Global Economy
That's what happens when you want to be part of the Global economy, everything is shared, things change.

I don't agree with this, I think our government should provide a certain level of protection for it's citizens, so that jobs are readily available and not exported.

That's what happens when you appoint a president with cheese holes for brains. I bet if you asked him what is 3/2 he would think about it.

The American public elected these people, so all they have to do is change it at election time, simple.
Posted by RompStar_420 (772 comments )
Link Flag
It is not totally one-sided...
Sun is making about 50% of its money in the US. That means that it is making the other 50% from the rest of the world. So hiring in countries where there is money to be made is not unexpected. (About 70% of Sun's workforce is in the US). Sun is also hiring in the US, if you look.

Now layoff's in the US after being profitable for a few quarters is surprising. I would guess it is mostly from the Solaris group (now OpenSolaris). One of the reasons to make something open source is to reduce the amount of people you need to develop it.
Posted by P MCCLURE (1 comment )
Link Flag
meanwhile , Sun lobbies for more H1Bs, claiming labor shortage
Look, hi tech companies, and corporations generally, are about making sure the bigwigs have enough coke up their noses and ****** in their beds. They don't *owe* their employees, cities, countries, or anyone else anything for any reason. The sooner you wake up and realize this, the sooner you'll stop feeling betrayed by organizations like Sun.

Don't like it? Doesn't sound *right*? Well let me tell you- America is about being a free market, not a democracy - and by the way, you can leave your *morals* at home or in church- this about making money, and concentrating that money into as few hands as possible. If you don' believe in that, you're not an American.

Oh , I see, you're one of those liberal cry babies who think that it's Man's responsibility to construct an equitable society through laws and the enforcement of those laws, is that it?

I suppose you think we should care as much about constructing a fair economic system as we do a dam or a power station and bring to the task the same level of thought and engineering .

Well, it ain't never gonna happen. Our lobbyists have your government by their *b*lls* and we're not going to be letting go anytime soon.

Corporations live to rape and rape to live. That's the way God wanted things to be; if He didn't, they wouldn't be that way. Case closed.

As for your liberal sniveling about *corporate responsibility* and *equitable distribution of income* - and patriotism and all the rest, you're all just losers. Sorry you lost ! Gaaaame OVER for YOU! SEE YA!

NEXT!

Trust me. We've got *your* government in our pocket. Think you live in a Democracy? Buddy, you live in a corptocracy, and we're the Corp.- so get used used to being poor.
Posted by asdf (241 comments )
Reply Link Flag
yep, that is true
I don't agree with it as well (H1B Visa Crap), but again, all Large US Software Companies are doing this, Microsoft, pretty much everyone is doing this, even small firms that are not publicly traded - they also hire people with H1B Visas eve for Contract Jobs, in addition to FTE.

When I used Sun's Hardware, it was pretty good and solid, I never much liked the Solaris OS, and always used Linux on the Sun Hardware.

I think long term Sun will be a good investment, since their stock is only at a $5, I will buy some shares tomorrow as soon as my deposit cleans at the brokerage house.

Can't beat that price and what Sun has in their inventory and has accomplished.
Posted by RompStar_420 (772 comments )
Link Flag
here ya go
I think this says it all.

<a class="jive-link-external" href="http://www.computerworld.com/blogs/node/5285" target="_newWindow">http://www.computerworld.com/blogs/node/5285</a>
Posted by asdf (241 comments )
Reply Link Flag
Yes , you are right
I was an employee of Sun India. Till 2004 Sun beat other Unix server vendors in India. Banking , Telecom majors use Sun Hardware and Solaris OS. Unix Market penetration was more than 90% by Sun though IBM and HP have large presence in India.
Posted by blrgeek (5 comments )
Reply Link Flag
Not impressed with Sun anymore
Sun used to be a really good company. But these days, their service organization is terrible. The quality of their products is dropping too. We bought a Sun X2200 and the thing is a hunk of junk. The nV interfaces have gone completely dead. The Broadcom NICs cut out making transfer of large files impossible. Often times we call up and talk to someone in service with a heavy Indian accent and that makes communication difficult. The few that are left here in the U.S. have so many products to support that they can't support any one product well.

If anyone thinks this is simply a "market issue" and all the cry babies should shut up about losing their jobs, I'm here to tell you that Sun's customers AREN'T HAPPY ABOUT IT. We're really weighing whether to buy more products from Sun or investigate other vendors.
Posted by chris_d (195 comments )
Reply Link Flag
that's what happens..
...when the basics of capitalism is forgotton, open source doesn't pay enough huh?
Posted by FutureGuy (742 comments )
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