Sun staff braced for more cuts

Sun Microsystems is set for more job losses, the company's chief financial officer has told a meeting of the troubled firm’s investors.

Sun Microsystems is set for more job losses, the company's chief financial officer has told a meeting of the troubled firm’s investors.

Michael Lehman said, “We are now ready to resize the company,” but refused to put a figure on how many jobs would go. A cost-cutting plan will be put before the company board, with head count due to be the biggest area for cutbacks, he said.

The news follows last month’s departure of chief executive Scott McNealy, who stepped down as the firm posted third quarter losses of $217m (£115m), compared with a $28m loss in the same period last year.

Revenues at the firm were up 21% year on year, reaching $3.18bn, driven by recent acquisitions and sales growth in traditional products, but the company has reported a succession of quarterly losses in recent years.

Sun has already been shedding staff, with 200 jobs axed last month from the high end server division. Those lay-offs represent around 7% of staff employed in the company’s scalable systems group.

Last year the company announced 600 job losses in Germany and a further 100 in its software division as part of a worldwide redundancy programme that hit 3,600 jobs.

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