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Sun to lay off 5000 employees

Posted on Friday, June 02 2006 @ 06:00:32 CEST by

Xbit Labs writes Sun is planning to reduce its workforce by up to 5000 employees.
“The main area TBR expects the company to trim headcount is in Sun’s Scalable Systems Group that develops the company’s high-end Sparc-based systems. To compensate for the reduction in operating resources dedicated to the Sparc platform, Sun will more heavily leverage the resources of its Sparc development partner Fujitsu,” said Martin Kariithi, an analyst with Technology Business Research (TBR).

In the recent years Sun already scrapped several major Sparc-related projects, but still continued to develop future Sparc processors. Given that the company’s high-end server market share has been going down for years now, the reduction of efforts put into the development of Sparc products may seem logical. Additionally, there are more layoffs expected within different divisions of Sun.



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