Sun to cut 3,000 jobs because of delay in acquisition by Oracle

By Marisa Wong

Milwaukee, Oct. 20 - The board of directors of Sun Microsystems, Inc. have approved a restructuring plan to reduce costs in light of delay in the closing of the acquisition of the company by Oracle Corp., according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The plan, effective Oct. 20, is intended to better align the company's resources with its strategic business objectives, including reducing Sun's workforce across North America, Europe, the Middle East, Africa, Asia-Pacific and emerging markets regions by up to 3,000 employees over the next 12 months.

Sun expects to incur total charges ranging from $75 million to $125 million in connection with the plan. The majority of the charges relates to cash severance costs and is expected to be incurred in the second and third quarters of the fiscal year ending June 30, 2010.

Sun is a Santa Clara, Calif., networking computing technologies company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.