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Print Edition StoriesWednesday, October 21, 2009
Sun to cut 3,000 jobs
By Bizjournals staff
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Sun Microsystems Inc. said Tuesday it will cut 3,000 more workers in the next 12 months as its proposed merger with Oracle Corp. is held up by regulatory review.
Sun (Nasdaq:JAVA) revealed its planned cuts in a filing with the U.S. Securities and Exchange Commission. The company said the plan is designed “to better align the company’s resources with its strategic business objectives.”
The move could affect hundreds of jobs locally. In 2007, Sun had 1,700 employees in Massachusetts, with the majority working in the company’s research laboratory on Network Drive in Burlington. Weak earnings associated with a slow market for enterprise servers and systems forced Sun to make several rounds of cuts companywide. It is unclear how many Sun employees are located in Massachusetts to date.
Sun employed 26,000 workers at the end of June. As of mid-2008, Oracle had around 700 Massachusetts workers.
Oracle’s (Nasdaq: ORCL) $7.4 billion acquisition of Sun has been approved by U.S. antitrust officials, but European regulators last month said they had “serious concerns” about it and began a full investigation.
Sun reported a fourth-quarter loss of $147 million in August on a 31 percent drop in revenue to $2.63 billion. Oracle CEO Larry Ellison said in September that Sun was losing $100 million a month.
Last November, Sun announced plans to restructure by laying off up to 18 percent of its global staff — 5,000 to 6,000 workers — and reorganizing the company’s software business groups.
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