Despite a successful quarter that surpassed analysts expectations, Sun Microsystems is poised for more job cuts. In a form filed Tuesday with the Securities and Exchange Commission to amend its bylaws, Sun also indicated it would be reducing its employee headcount.
According to the filing, on August 1, the Board of Directors of Sun
approved a plan “to better align the Company’s resources with its strategic business objectives,” including reducing its workforce.
The company expects the total charge for the layoffs to be between $100 million to $150 million over the next several quarters, the majority of it to come in the first half of the fiscal year. Its 2008 fiscal year began on July 1.
After taking the helm as CEO in April of 2006, Jonathan Schwartz repeatedly said he was opposed to any layoffs, but eventually the company did do some job cutting, reducing its workforce by more than 4,000. Sun currently has 34,219 employees, down from 38,061 on June 30, 2006. Sun did not return calls asking for further comment or specificity as to the number of likely layoffs.
Sun did not say specifically where it would be cutting staff. The last round affected all areas of the company. Sun also amended its Bylaws to reduce the size of its Board of Directors by one, from 11 members to 10. It did not say who the departing board member would be.
Sun reported earnings of $329 million, or 9 cents per share, for the quarter ended June 30. Analysts had been expecting earnings of 5 cents per share. It was far better than the $301 million, or 9 cents per share, during the same quarter in 2006.
Revenue was $3.84 billion, a slight increase from the $3.83 billion in sales in 2006.