Menu
Sun to cut 3,000 jobs as Oracle awaits approval for deal

Sun to cut 3,000 jobs as Oracle awaits approval for deal

Sun is losing $US100 million per month, Oracle CEO Larry Ellison said last month

Sun Microsystems will lay off up to 3,000 workers over the next 12 months as Oracle awaits approval from European regulators for its acquisition of the company.

Sun is losing $US100 million a month while it awaits approval for the deal, Oracle CEO Larry Ellison said last month, so news of the layoffs came as no great surprise.

In a filing with U.S. regulators Tuesday, Sun said it was making the cuts "in light of the delay in closing the acquisition."

It said the move will "better align the company’s resources with its strategic business objectives."

Sun will take a charge of $US75 million to $US125 million for the job cuts, mostly for cash severance payments, it said. It expects to incur most of the charges in the second and third quarters of its fiscal year, which means the current calendar quarter and the first three months next year.

Job cuts were a likely consequence of the deal in any case. Tony Sacconaghi, a technology analyst with Sanford C. Bernstein & Co., has said Oracle may cut up to 10,000 jobs once the deal is complete.

Sun already announced plans last November to axe between 5,000 and 6,000 jobs to improve its financial position.

The cuts announced Tuesday appear to be in addition to those. Sun didn't immediately return a call for comment.

The U.S. Department of Justice approved Oracle's $US7.4 billion acquisition of Sun in August, but the European Commission has launched an investigation that could last until January.

The regulators say they are concerned about the effect that Oracle's ownership of Sun's MySQL database will have on the open-source software market.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags jobsOraclelayoffsjob cutsOracle-Sun mergerSun Mircosystems

Featured

Slideshows

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments