Sun Microsystems Inc. announced on Nov. 14 it was cutting up to 6,000 jobs as the global economic crisis drives down demand for its computer servers. Sun said it was cutting 15% to 18% of its global workforce, or 5,000 to 6,000 jobs, to "align its cost model with the global economic climate."
A company spokeswoman said the majority of the layoffs, the second round of job cuts at the Santa Clara, Calif., firm since May, will be in the U.S.
The restructuring, which will involve charges of $500 to $600 million over the next 12 months, should result in savings of some $700 to $800 million a year, Sun said.
The layoffs come two weeks after Sun Microsystems reported a quarterly net loss of $1.66 billion compared with a net profit of $89 million during the corresponding period a year earlier.
Copyright Agence France-Presse, 2008