Sun Microsystems Cuts 6,000 Jobs

Sales for high-end servers made by Sun Microsystems are down by 27 percent. The business technology company will slash 18 percent of its work force due to the recent decline in sales. It follows three other rounds of big layoffs in the past three years in which nearly 7,000 jobs were cut.

Sun Microsystems Inc said it will slash up to 6,000 jobs. The cuts are about 18 percent of its global work force. Sales and products made by the business technology company have slumped 27 percent in its latest quarter.

The greater part of the work force reduction will be made in the United States. The job cuts were initially announced last May. The reorganizing will save Sun Microsystems about $700 to $800 million dollars a year.

Sun Microsystems also lost its software chief, Rich Green, in November. The technology company plans to break-up its software division into three new business groups.

“Today, we have taken decisive actions to align Sun’s business with global economic realities and accelerate our delivery of key open source platform innovations,” Sun chief executive Jonathan Schwartz said in a statement.

The software division is the publisher of Java and other software products. The three new technology groups will be the application platform software, systems platforms, and cloud computing.

“Sun’s new organizational alignment is a recognition of the comprehensive role software plays in the company’s growth strategy,” the company said in a statement.

Sun Microsystems reported a third quarterly net loss of $1.66 billion dollars.