Computer network server maker Sun Microsystems said on Friday that it will layoff about 6,000 employees as part of cost cutting measures
NEW YORK: Computer network server maker Sun Microsystems said on Friday that it will layoff about 6,000 employees as part of cost cutting measures and will refocus on its business model.
"Sun's Board of Directors has approved a restructuring plan aimed at reducing costs by about USD 700-800 million annually. The plan includes a reduction of approximately 5,000 to 6,000 employees, representing 15-18 per cent of the company's global workforce," Sun Microsystems said in a statement.
"Today, we have taken decisive actions to align Sun's business with global economic realities and accelerate our delivery of key open source platform innovations - from MySQL to Sun's latest Open Storage offerings," Sun Microsystems CEO Jonathan Schwartz said.
The company would phase out the total restructuring cost over the next 12 months. The company expects to reduce its costs by USD 375-450 million within its current fiscal.
"Sun expects to begin realising cost savings in the third quarter of the company's fiscal year 2009, and expects to realise a substantial portion of the run rate benefit by the first quarter of the next fiscal year," the statement added.
Besides, Sun Microsystems' Executive Vice-President( Software) Rich Green has resigned from the company with immediate effect. Further, the company has announced a corporate rejig of its marketing division.
Sun has appointed Peter Ryan as the Executive Vice- President of Global Sales and Services, while Corporate Marketing would be led by Senior Vice-President, Ingrid Van Den Hoogen, who also joins Sun's Executive Leadership Team.
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