Sun Microsystems has announced a further 3,000 job cuts, blaming delays in getting the green light from the European Commission for its merger with Oracle.
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
In a filing with the Securities and Exchange Commission, Sun failed to provide any update about its finances, but said its board had decided on the job cuts "in light of the delay in the closing of the acquisition of the company". The cuts account for about 10 per cent of its workforce, said a report in the Financial Times.
The Unix server and workstation supplier has been hit hard by the economic crisis, since the banking sector was one of its biggest customers. Oracle announced in April 2009 that it would buy Sun for $7.4bn, but the merger has been held up by EU antitrust regulators. The merger has been cleared by US authorities, but because of concerns over competition in the database market the EC has kicked off an investigation that has until January to make a decision over the tie-up.
"The commission has an obligation to ensure that customers would not face reduced choice or higher prices as a result of this takeover," competition commissioner Neelie Kroes said.