Sun axes 200 staff from high-end server division

Sun Microsystems has axed around 200 staff from its high-end server division, as overall market sales in this sector continue to tail off.

Sun Microsystems has axed around 200 staff from its high-end server division, as overall market sales in this sector continue to tail off.

The lay-offs represent around 7% of staff employed in the company’s scalable systems group, a division that produces products based around Sun's high-end Sparc CPU.

The number of job cuts is also consistent with the number of staff laid off in other divisions over the last 18 months.

Sun is involved in an ongoing and gradual staff headcount reduction programme, as it seeks to trim costs and re-focus the business on growing areas such as open-source-based platforms, such as OpenSparc.

Sun said the staff cuts were necessary to “maintain a cost structure that provides profitable growth”.

It is believed most of the latest jobs cuts will take place in the US.

Analyst Gartner recently reported that overall high-end server shipments and sales had declined in the past 12 months, while lower-end business had seen double-digit  growth.

While Sun has launched a number of lower end servers in recent months, it still relies on the higher-end for the bulk of its business.

Read more on Server hardware

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close