Aussie Sun staff face uncertainty amid job cuts

Sun's 650 local staff face an uncertain future following the company's decision to cut its global workforce by up to 18%.

Some 650 local Sun employees have been left hanging while the company decides who will face the axe in its plan to cull 6000 jobs globally.

The company would not reveal how many local jobs will be axed as part of the global restructure plan triggered by the economic crisis.

According to a Sun spokesperson, the employment restructure will cost it about $600 million over the next year.

“We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organisational changes being implemented, will put the company on track for sustained profitability and improved financial performance,” the spokesperson said in a written statement.

“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 restructure is estimated to save up to $800 million a year. Sun will have about 28,000 staff after the restructure.

Sun is not the only top tier IT company to announce job cuts. Last week HP announced its local staff will not be immune to a 7.5% cut in personnel which the company announced in September. As part of that restructure, which will take place over the next three years, the company will shed 24,600 employees from its HP and EDS workforce.

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Darren Pauli

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