Tuesday October 20, 10:58 PM
UPDATE 2-Sun Micro to cut 3,000 jobs as Oracle deal delayed
NEW YORK, Oct 20 (Reuters) - Computer maker Sun Microsystems Inc is cutting 3,000 jobs worldwide, or about 10 percent of its staff, blaming delays in its $7 billion sale to Oracle Corp.
Oracle CEO Larry Ellison recently said
that Sun is losing about $100 million a month because of uncertainty about the computer maker's future as European antitrust regulators pursue an in-depth probe of the transaction.
Rivals IBM and Hewlett-Packard Co are taking advantage of the uncertainty by poaching Sun's customers with steep discounts.
'Sun's business is really hurting,' said Cross Research analyst Shannon Cross.
Analysts had widely expected thousands of Sun employees to lose their jobs, but not until No. 2 business software maker Oracle (NASDAQ: ORCL - news) closes the deal.
Sun sold itself to Oracle after several years of failed attempts to devise a strategy to turn itself around. Last year it announced plans to 5,000 to 6,000 jobs and posted a net loss of $2.2 billion.
Sun said the job cuts would take place over the next 12 months, and it expects to take $75 million to $125 million in charges over the next several quarters. It said the job cuts would occur worldwide -- in its North America, EMEA, APAC and emerging markets regions.
Oracle spokeswoman Karen Tillman declined comment.
(Reporting by Jim Finkle and Ritsuko Ando; Editing by Paul Thomasch, Toni Reinhold, Gary Hill) Keywords: SUNMICRO/
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
