Sun Microsystems to Cut 3,000 Jobs

Sun Microsystems Inc. said it plans to lay off about 3,000 employees, or about 10% of its work force, because of delays in the closing of its purchase by Oracle Corp.

The hardware and software maker has been reducing its work force over the years because of declining revenues, and additional job cuts have been widely expected to happen after Oracle buys the company.

That deal, announced in April, was originally expected to close over the summer. But a review by European regulators has been holding up the transactions.

Meanwhile, Sun's business is in limbo. Oracle Chief Executive Larry Ellison said recently that Sun was losing $100 million a month.

Sun, which disclosed plans for the reductions in a filing with the Securities and Exchange Commission, said the positions will be eliminated over the next 12 months. But a Sun spokeswoman said the cuts are already under way, and that the timing described in the filing is in part a result of local laws that require advance notice of terminations. She declined to say how many positions have already been eliminated.

Sun, based in Santa Clara, Calif., said in the filing that it expects the layoffs will result in charges ranging from $75 million to $125 million over the next several quarters.

Oracle recently unveiled products that combine its software with hardware from Sun. But the company can only provide limited insight into its plans for Sun until the deal closes.

"Much of what Sun does could have significantly better operating incomes than it does," said Safra Catz, Oracle's Co-President, last week at an event for financial analysts. "We expect there to be some very, very quick changes right out of the box." link....