Sun to cut 3,000 jobs as Oracle awaits approval for deal
Sun is losing $US100 million per month, Oracle CEO Larry Ellison said last month

Sun Microsystems will lay off up to 3,000 workers over the next 12 months as Oracle awaits approval from European regulators for its acquisition of the company.

Sun is losing $US100 million a month while it awaits approval for the deal, Oracle CEO Larry Ellison said last month, so news of the layoffs came as no great surprise.

In a filing with U.S. regulators Tuesday, Sun said it was making the cuts "in light of the delay in closing the acquisition."

It said the move will "better align the company’s resources with its strategic business objectives."

Sun will take a charge of $US75 million to $US125 million for the job cuts, mostly for cash severance payments, it said. It expects to incur most of the charges in the second and third quarters of its fiscal year, which means the current calendar quarter and the first three months next year.

Job cuts were a likely consequence of the deal in any case. Tony Sacconaghi, a technology analyst with Sanford C. Bernstein & Co., has said Oracle may cut up to 10,000 jobs once the deal is complete.

Sun already announced plans last November to axe between 5,000 and 6,000 jobs to improve its financial position.

The cuts announced Tuesday appear to be in addition to those. Sun didn't immediately return a call for comment.

The U.S. Department of Justice approved Oracle's $US7.4 billion acquisition of Sun in August, but the European Commission has launched an investigation that could last until January.

The regulators say they are concerned about the effect that Oracle's ownership of Sun's MySQL database will have on the open-source software market.

Recommend this article?
Yes0 votes
No0 votes

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

Enter the fully qualified URL, eg. http://www.example.com/
Users posting comments agree to the PC World comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Syndicate content Syndicate content Syndicate content Syndicate content Syndicate content Syndicate content Syndicate content
 
Gift Guide
Samsung

CXO Latest

LED Advisor
 

Colour your world with Samsung

A chance to win with every
Samsung Consumable purchase*