Sun Microsystems Announces Layoff of 4000-5000 Employees

Sun Microsystems announced plans to cut up to 13 percent of its work force, in its first major restructuring effort under new CEO Jonathan Schwartz.

Sun said it will cut between 4,000 to 5,000 employees over the next six months, which represents an 11 to 13 percent cut in its global work force of 37,500. Sun said the bulk of the layoffs are expected to occur in the current quarter.

It anticipates that the cuts will save it $480 million to $590 million annually by the fourth fiscal quarter in 2007.

As part of its efforts to save costs via consolidating its real estate holdings, Sun will sell its Newark, Calif., campus and also give up leased facilities in Sunnyvale, Calif.

via CNet