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Sun Sets on 6,000 EmployeesPOSTED November 17, 2008 SANTA CLARA -- Sun Microsystems has announced a huge restructuring that will mean the loss of up to 6,000 employees or 18% of its workforce. As part of this effort, Sun is announcing an alignment of its Software organization into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms - with a focus on boosting open source momentum and growing new sectors of the market who view technology as a competitive weapon. "Today, we have taken decisive actions to align Sun's business with global economic realities and accelerate our delivery of key open source platform innovations - from MySQL to Sun's latest Open Storage offerings," said Jonathan Schwartz, CEO, Sun Microsystems. Sun has been hurt by the credit crunch and lower sales of its high-end servers. A reported 27% of Sun's clients are financial companies which have been hammered by the stock market crash. Improving Cost Structure Sun's Board of Directors has approved a restructuring plan aimed at reducing costs by approximately $700 to $800 million annually. The plan includes a reduction of approximately 5,000 to 6,000 employees, representing approximately 15% to 18% of the Company's global workforce. Sun expects to incur total charges in the range of $500 to $600 million over the next twelve months in connection with the plan, of which it expects to incur approximately $375 to $450 million within its current fiscal year 2009. Sun expects to begin realizing cost savings in the third quarter of the Company's fiscal year 2009, and expects to realize a substantial portion of the run rate benefit by the first quarter of the next fiscal year. Streamlining for Growth Sun's new organizational alignment is a recognition of the comprehensive role software plays in the Company's growth strategy. Sun creates the best platforms on which to develop applications (Application Platform Software), the best platforms to run those applications (Systems Platforms) and is taking the next step to enabling infrastructure as a service through 'cloud platforms' (Cloud Computing & Developer Platforms). Sun's new software alignments include the formation of two new business groups and a new group within Sun's existing Systems business: * Application Platform Software: Executive Vice President, Anil Gadre, will move from his position as Chief Marketing Officer to lead this newly formed group. Charged with creating the highest value modern software business in the industry, the unit will build on Sun's open source leadership position to capitalize on the global market's demand for open application platforms for everything from databases to business integration services on servers, desktops and handheld devices. This includes the entirety of Sun's Java technology franchise, MySQL open source database products, as well as Software Infrastructure including the widely adopted GlassFish Application Server and leading Identity management products. This group will also include the Sun Learning Services organization. In addition, Sun is also aligning its marketing function to more effectively support its sales and product organizations. Product and technology marketing will now be integrated directly into the product groups with field and partner marketing moving under Peter Ryan, Executive Vice President of Global Sales and Services. Corporate Marketing will be led by newly appointed Senior Vice President, Ingrid Van Den Hoogen, who also joins Sun's Executive Leadership Team, reporting to the CEO. © Copyright SVDaily.com |
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