Sun Micro Firing 5,000-6,000, Citing "New Economic Reality"

Sun Microsystems, one of the larger sellers of server computers, has started a broad restructuring that could see up to 6,000 employees lose their jobs as it joins a rapidly growing list of technology companies reeling from the financial turmoil.

Before the stock market opened Friday, Sun disclosed that it will layoff 5,000 to 6,000 workers or 15 per cent to 18 per cent of its work force. The company, already dealing with layoffs announced in May, expects to save $700 million to $800 million a year as a result of the moves, while also taking up to $600 million in charges in the next 12 months.

“The focus here is to eliminate some of the inefficiencies that have made it hard to do business with Sun,” said Jonathan I. Schwartz, chief executive at Sun, adding that a “new economic reality” had taken hold in the market.

There’s a nice euphemism: “New economic reality.”  Not that this really has much to do with Sun’s problems.

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