Loss-making Sun Microsystems cuts 1,000 jobs

Sun Microsystems has...

Sun Microsystems has axed 1,000 staff in the US and Canada.

The cuts come as the first of 2,500 job losses Sun Microsystems announced in May.

Loss-making Sun is to announce further redundancies in Europe and other regions.

The company slipped into the red in the third quarter ending 30 March, partly as a result of slumping sales in North America.

Cutting 2,500 staff will reduce Sun's overall headcount by 7%.

After posting the third quarter results, Sun Microsystems CEO Jonathan Schwartz said: "The US economy presented Sun with significant challenges in the third quarter, masking our progress in developing nations and economies across the world.

"With double-digit year-over-year growth in India and Brazil, and triple digit billings year-over-year growth in our energy efficient, Solaris-based Chip Multi-Threading (CMT) systems, Sun made considerable progress during the quarter."

Jonathan Schwartz added: "We continue to invest in the future, created by open alternatives to proprietary technologies, best exemplified by the acquisition of MySQL. The world is moving to open source innovation, and Sun continues to lead that revolution."

Sun Microsystems has axed thousands of jobs over recent years, largely in response to slumping server sales. Sun now relies on server software sales, although it is making much of it freely available through open source programmes.

Analysts and investors expect further job cuts if the company does not return to profit. The company's fourth quarter and full-year results are due on 1 August.

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