Sun Microsystems slashes 4000 jobs

Sun Microsystems is to reduce its workforce by 4000 people, as it posts worse than expected first quarter results. However, emerging markets still remain a priority says company COO, Ed Zander.

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By  Greg Wilson Published  October 6, 2001

Sun Microsystems is to reduce its workforce by 4000 people, as it posts worse than expected first quarter results

The vendor, which has been making internal cut backs — the US office no longer has free donut day — in an effort to maintain its workforce has had to succumb to economic reality.

Sun said it would taken a $500 million charge on its second quarter plans to reduce it workforce by 9%.

Sun's Chairman and CEO, Scott McNealy said, "Sun's position as a leading provider of Internet and network infrastructure is stronger than ever, but the current economic environment is obviously very difficult. The computer industry is continuing to consolidate and downsize itself. In addition, the events of September 11 have impacted us all. Things were tough with the economy before, but now we are facing increasing uncertainties both in the US and globally. To ensure the long term health of the business, we are making structural changes to the capacity of our company."

McNealy added, "Over the past several months, we've been aggressively managing costs in all areas. Our employees came through in force and without that, we would clearly be talking about reducing capacity to an even greater extent. We intend to get the business profitable again as soon as possible."

McNealy, went to say that he is convinced that Sun has the right strategy going forward.

Chief operating officer and company president, Ed Zander, reaffirmed the company’s long-term strategy in an exclusive interview with ACN last month. During the interview he said that Sun would continue to focus on vertical industries that continue to show growth.

“We are also focusing on markets that show the promise of growth by directing sales efforts toward… geographies that show business potential, such as the Middle East,” says Zander.

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