Sun to Pink-Slip 3,000 Workers
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Sun Microsystems in an SEC filing Tuesday disclosed that it will lop off up to 3,000 jobs in the next 12 months as it and Oracle await the European Commission's approval of their proposed $7.4 billion merger.
Oracle's (NASDAQ: ORCL) $7.4 billion purchase of the software and server company was given a thumbs-up from the U.S. Department of Justice but the EC is holding off on its verdict until sometime early next year.
In the filing, Sun (NASDAQ: JAVA) officials said the layoffs will represent about 10 percent of the company's 29,000 employees and will be done in phases over the next year.
Once the layoffs are completed, the company expects to absorb between $75 million and $125 million in restructuring charges. The cuts will come from all its major regions including North America, Europe, Asia and other emerging market, company officials said in the filing.
It's the second major wave of cuts to hit the beleaguered server vendor in the past year; Sun previously undertook cuts beginning in November 2008 through a separate move that aimed to eliminate 5,000 positions.
Sun Microsystems shares closed off $0.10 a share, or 1 percent, to $9.01 in Tuesday trading while Oracle shed $0.23 to close at $22.19.