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(RTTNews) - Sun Microsystems Inc. (JAVA: News ) announced Friday that it was slashing its workforce by up to 6,000 jobs, as the company restructures in the face of a weak economy.

The cost-cutting move is aimed at reducing expenses by about $700-$800 million per year, the company said. Under the plan between 5,000 and 6,000 jobs will be cut, representing about 15% to 18% of its global workforce.

The company estimated that the restructuring will lead to charges of $500 to $600 million over the next 12 months. About $375-$450 million of this will come in its current 2009 fiscal year.

About two weeks ago, Sun announced its preliminary first-quarter results, saying it fell to a loss in the three-month period compared to a profit in the same period last year. The company's results were affected by goodwill impairment and restructuring charges as well as the weak U.S. economy.

The Santa Clara, California-based company posted a net loss of $1.677 billion or $2.24 per share, compared to net income of $89 million or $0.10 per share reported in the prior year quarter.

Excluding one-time charges, largely for goodwill impairment, the company lost $65 million, or $0.09 per share, still worse than the $0.08-per-share loss analysts were predicting.


Source :
1. Sun Microsystems Plans To Cut Up To 6,000 Jobs, 11/14/2008 9:12 AM ET.