Feeling the heat of the slowdown in IT spending, Sun Microsystems Inc. said yesterday it plans to cut approximately 300 jobs by the end of the year.
Sun spokeswoman Elizabeth McNichols confirmed that Sun has started to inform about 2 percent of its workforce, or 872 employees, that they will lose their jobs if they are unable to secure new ones within the company. The affected employees have about 60 to 120 days to find new jobs, McNichols said.
According to McNichols, Sun is "redeploying" some of its staff -- something the company does periodically. She said Sun expects that through a combination of redeployment and attrition, about 572 people will find new jobs, while approximately 300 will be laid off.
"This is a redeployment of resources so we can [introduce] resources into our highest priority areas," said McNichols, who declined to spell out which departments Sun considers high priorities. "We are eliminating some positions and creating others.
"A lot of the people who are redeployed will find jobs within the company immediately. But some will probably not find jobs [at Sun]," she said.
McNichols said Sun last redeployed workers about two years ago.
Last month, Sun reported that revenue for its fiscal fourth quarter, which ended June 30, was down 20 percent from a year earlier. Revenue for the quarter was US$4 billion, compared with $5.02 billion in the fourth quarter of fiscal 2000. The hardware and software maker posted pro forma net income for the quarter of $134 million, or 4 cents a share, down from the $717 million in the same period a year ago.