Sun Flames 6,000 Workers in Cost-Cutting Bid

Sun Microsystems announced this morning that it will lay off as many as 6,000 workers and realign its software division–which includes the widely used Java platform–in an effort to stem costs amid the economic downturn. Sun recently announced a $1.68 billion loss for the third quarter ending Sept. 30. It was a huge reversal from the […]

Written By
thumbnail Lawrence Walsh
Lawrence Walsh
Nov 14, 2008
Channel Insider content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

Sun Microsystems announced this morning that it will lay off as many as 6,000 workers and realign its software division–which includes the widely used Java platform–in an effort to stem costs amid the economic downturn.

Sun recently announced a $1.68 billion loss for the third quarter ending Sept. 30. It was a huge reversal from the same period in 2007, when the high-end hardware and software vendor reported $89 million profit.

Jonathan Schwartz
CEO, Sun Microsystems

Home to Java, MySQL and the Solaris operating system, Sun was rebounding in recent years under the leadership of Jonathan Schwartz. In 2006, the company reorganized under four primary business units: storage, software, servers and security. Green and energy efficient computing has been a particular emphasis, as the company has debuted hardware with better power and cooling designs.

Survey: Good Tech and Sales
Help is Hard to Find

The real business driver behind Sun has been fueling the Web 2.0 world. Sun bet that the Web 2.0 world would need high-end servers and storage to enable effiencent and feature-rich cloud-based applications.

The company says that falling demand for high-end hardware is behind its losses and forcing budget and staffing cuts. The layoffs, which will eliminate as much as 18 percent of Sun’s workforce, will save the company $700 million to $800 million. The company will incur a charge of as much as $500 million as a result of the layoffs and restructuring its software division.

The effect of the layoffs and restructuring on the Sun channel, which numbers more than 3,000 partners in North America, were unclear as of this report.

 

Recommended for you...

Video: Why Women Are Leaving Tech – And How BouncePoint Plans to Stop It
Katie Bavoso
May 2, 2025
Video: Davin Jackson: The Cheat Code To A Career In Cybersecurity
Katie Bavoso
Jan 23, 2025
The IT Job Market in 2024: MSPs and MSSPs in Review
Jordan Smith
Jan 7, 2025
Video: The Three Pain Points Holding Back High Capacity Leaders
Katie Bavoso
Jul 25, 2024
Channel Insider Logo

Channel Insider combines news and technology recommendations to keep channel partners, value-added resellers, IT solution providers, MSPs, and SaaS providers informed on the changing IT landscape. These resources provide product comparisons, in-depth analysis of vendors, and interviews with subject matter experts to provide vendors with critical information for their operations.

Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.