Sun to Reduce Work Force, Again
Sun Microsystems will spend up to $150 million in the remainder of the year in severance pay, the Santa Clara based maker of servers and storage gear said in a SEC regulatory filing Aug. 7.
Though Sun's filing did not specify the number of cuts, some analysts estimate the slash-count at over 1,000. The company expects to absorb most of the charges in the first half of the fiscal year ending June 30, 2008.
On July 30, Sun reported a return to profit in the second and third quarters after five consecutive quarterly losses.
By revamping its product line—selling servers powered by AMD and Intel chips—it is hoping to stage a recovery.
