Sun Microsystems says to cut about 5,000 to 6,000 jobs

[UpInArms]

Source: Reuters

(Reuters) - Sun Microsystems Inc said on Friday it would cut 5,000 to 6,000 jobs. Highlights:

* Aligns business with global economic climate and amplifies growth

opportunities across open source platforms

* Says job cuts represents about 15 to 18 percent of the global workforce

* Says expects to incur total charges in the range of $500 to $600 million over

the next twelve months

* Says about $375 to $450 million of charges will be incurred within its

current fiscal year 2009

* Says expects to begin realizing cost savings in Q3

* Says rich green, executive VP of software, has chosen to leave the company

Read more: http://www.reuters.com/article/newsOne/idUSTRE4AD3M320081114

[ixion]

1. ouch

...just ouch. :(

[legin]

2. Sun Microsystems rated BBB- at Fitch

Outlook negative (whatever that means)

http://www.fitchratings.com/corporate/sectors/issuers_list_corp.cfm?mm_id=§or_flag=1&marketsector=1&mrkt_sctr_id=&detail=&body_content=issr_list&start_alpha=S&start_row=151&searchText=

[SpiralHawk]

3. More of the putrid fruit of republiconomics. Ptoooey.

[mainegreen]

4. Sun has been clueless and rudderless for about seven years now.

Their channel sucks. The forces that drove their upper end sparc boxes no longer drive the market. Microsoft managed to build a decent mid-high end OS. Linux has eaten away at the *NIX low end. IBM is stomping around everywhere else. Java did not become the world killer they expected, and frankly even if it had, it never was going to make enough money to save the company.

SUN, unsure of where they're going.

[ramapo]

6. Channeless

Sun never wanted to deal much with resellers. Very arrogant. I'd be surprised if they survive.

[mainegreen]

8. It amazes me how many companies make the 'screw the channel' mistake.

In the end, it always bites them in the ass.

[boomerbust]

5. Trickle Down Ronnie

Is smiling today, knowing that his minions finished the job he started. We are about to find out what kind of leader Obama will be. Will he govern with the mandate he was given or will he govern worrying about the 2012 election.

[OhioChick]

7. Not good....

I'd like to see where exactly these job cuts are going to be. (What country/countries)

[TrogL]

9. Likely on the software end of things

Sun still makes a killer box and the Cool-threads series of chips is amazing. Solaris is by far a superior operating system for high-end computing.

They need to become a lean, mean player in a niche market. These layoffs will work towards that goal.

[Lance_Boyle]

10. clearly Sun is too big to fail

We all (well, the vast, vast majority of us) have their beans installed on our computers. Definitely too big to fail. Let's give them a bailout!

[FarCenter]

11. Sun, the Digital Equipment of tomorrow

So when will Fujitsu pick up the remains and put them out of their misery.