Sun confirms local headcount cull

Number of local staff affected unknown after the embattled vendor goes through its second round of restructuring

Embattled vendor, Sun Microsystems, has confirmed it has started reducing its headcount in Australia.

A Sun spokesperson told ARN that there were staff cuts underway, but could not go into specifics. However, sources claimed the vendor was cutting significant numbers in Sydney and Melbourne.

The staff cuts come as news IBM and Sun were unable to reach terms for a merger hit the market.

The company last week announced global cuts to the tune of 1500 as a follow up to previous restructuring efforts. In the initial announcement in November, Sun said it would cut 15-18 per cent of its workforce, or up to 6000 employees.

The global cuts involve a portion of Sun's customer-facing staff, including direct sales and professional services employees, according to a research note from Wedge Partners, a financial analyst company.

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