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Sun MicroSystems To Shed 3000 Jobs After Oracle Acquisition

Citing delays in its proposed takeover by Oracle Corp, Sun Microsystems has announced plans to pinkslip nearly 10 percent of its total employees over the next 12 months.

The plan by Sun Microsystems to layoff nearly 3000 employees is seen by many as precursor of things to come as the company has been making significant losses in recent months.

Details of the decision were disclosed in its filling before the US Securities and Exchange Commission and it believes that layoffs may help it stem the operating losses that it is suffering which currently runs close to $100m a month.

Though the layoffs are expected to happen over the next 12 months, it seems that the process has already started with a Sun spokesperson mentioning that some jobs cuts are under way.

It is interesting to note the Oracle’s plans to takeover Sun Microsystems have run into trouble with the European Commission investigating the issue on possible effects of the deal in hampering competition in the database market.

Incidentally, Sun Microsystems owns the leading open source database solution MySQL, which competes directly with Oracle’s solutions and this has become a major stumbling block for the deal.

Our Comments

The recession is a good time to make cuts it seems. The 3000 job losses are only the start and it is likely that others will follow. Sun Microsystems will ultimately be absorbed by Oracle and the European Commission could well ask the software giant to spin off some products like MySQL.

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Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.