Oracle is Planning More Layoff after Acquisition Of Sun Micro

In order to restructure the cost after the integration with Sun Microsystem, Oracle is planning to downsize more people across Europe and Asia that is going to be more than triple what the company announced earlier. The move emphasizes the challenges that the company facing to turnaround the money losing hardware maker, Sun Microsystem. Oracle announced in its recent filing with Security and Exchange commission that the company expected $675 million to $825 million in restructuring costs which is on top of the $325 million that it previously announced.

Oracle did not disclose that how many jobs will be lost and company officials could not be reached for comment. Although, Oracle Chief Larry Ellison announced that the company is going to cut about 1,000 positions at Sun and hire 2,000 new employees for the division in the sales department. As of January, there are 20,000 SUN employees who belong to of Oracle’s 110,000 workforce. Oracle continued  that $550 million to $650 million of the additional costs would be spent for employee severance, $85 million to $115 million would go towards facilities consolidation, and $40 million to $60 million would pay for contract terminations.

SUN Micro prospered in 90’s by selling high end computer system. But, the business went down significantly after the period of dot com burst. However, the company is widely respected for its technological innovation and quality staff.