Sun Microsystems cutting up to 5,000 jobs
Last Updated Wed, 31 May 2006 18:37:57 EDT
Sun Microsystems Inc. plans to cut between 4,000 and 5,000 jobs as it tries to bring its finances back into line.
The cuts will reduce Sun's 37,500-person work force by about 12 per cent over the next six months.
The once mighty high-tech supplier from Santa Clara, Calif., did not say where the cuts would be made. However, the company plans to sell property it owns in Newark, Calif., and to exit leases at a site in Sunnyvale, Calif.
Wednesday's announcement comes a month after Scott McNealy stepped down as Sun's chief executive. It is one of the first big initiatives to be taken by his successor, Jonathan Schwartz.
The company, one of the world's biggest suppliers of the large computer servers that run corporate networks and websites, was once a Wall Street darling. But it has struggled since the dot-com bubble burst in late 2000.
Investors have driven down Sun shares from a high of about $64 in September of 2000 to a range of about $3.50 to $5 over the past year. Some analysts have criticized Sun's management for not cutting costs more dramatically.
Sun (NASDAQ:SUNW) shares rose six cents or 1.3 per cent in after-hours trading following the announcement.