Sun layoff hits hundreds

Second phase of a job cut hits employees of the server and software company, part of a plan to lay off up to 5,000.

Sun Microsystems notified hundreds of employees Thursday that they'll be losing their jobs, a second phase in a plan to cut 4,000 to 5,000 workers.

About 950 employees were notified in the United States, and approximately the same number elsewhere in the world, Sun spokeswoman Stephanie Hess said. The cuts spanned a range of Sun operations, she said.

The first wave of cuts took place in June, and the overall layoff will be finished by the end of June 2007, the end of Sun's first full fiscal year with new Chief Executive Jonathan Schwartz at the helm.

Sun's last quarter was unprofitable in part because of charges associated with the layoffs, but the company reported revenue of $3.8 billion, more than the $3.6 billion Wall Street analysts expected.

Schwartz's promotion and the job cuts led UBS Warburg analyst Benjamin Reitzes to suggest on Thursday that Sun has the same ingredients for a turnaround that Xerox had earlier in the decade.

"Many aspects of the potential turnaround seem familiar," he said in a report. "Both have large, sticky customer bases, high market share, hidden assets, bloated cost structure and solid cash flow potential...We believe shares represent a compelling value."

Featured Video
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

The one thing every refrigerator owner should know

One key factor determines how long your food stays fresh (and how much you end up wasting). Sharon Profis shares a few refrigerator organization tips everyone should know on "You're Doing it All Wrong."

by Sharon Profis