Sun to lay off another 3,000 employees
In preparation for its takeover by Oracle, the server maker says it expects to cut about 10 percent of its global workforce during the next 12 months.
Sun Microsystems plans to cut as many as 3,000 jobs, or about 10 percent of its global workforce, during the next year as it prepares for Oracle's takeover of the company.
The cuts, revealed on Tuesday in a filing with the U.S. Securities and Exchange Commission, represent the second major round of layoffs in a year for the server maker. Sun announced restructuring plans last November to cut up to 6,000 jobs this year, or 18 percent of its global workforce.
Those cuts were disclosed before Oracle announced its $7.4 billion bid for Sun in April, following Sun's rejection of overtures from IBM. IBM was still interested in Sun and somewhat blindsided by Oracle's move, a source told CNET News at the time.
The U.S. Justice Department approved the takeover in August, but the merger still requires approval by the European Commission, which is concerned that the deal could threaten competition in the database market in the European Economic Area (EEA), an association composed of 30 European countries. The Commission has until January 19 to make a final decision on the merger.
Meanwhile, the delay is causing financial turmoil for Sun's business. Oracle CEO Larry Ellison said at an industry gathering in Silicon Valley last month, "Sun is losing $100 million a month; we'd like to get this thing done."
The acquisition is part of a change in thinking for Oracle, which, at one time, eschewed mergers but has gone on a buying spree in recent years, gobbling up PeopleSoft and many other software companies. Ellison at one time specifically rejected the notion of buying Sun.
Sun said in the filing that it expects to take $75 million to $125 million in restructuring charges over the next several quarters.
An Oracle representative did not immediately respond to requests for comment.