Sun Microsystems Will Shed 3,000 Jobs

Sun Microsystems has decided that it will reduce its workforce by 3,000 jobs, or 10 percent of all its employees, because of several delays in its acquisition by Oracle Corp. Even after Oracle completes the acquisition of Sun, though, the company, which has been struggling with declining revenues, expects even more job reductions to occur.

The acquisition of Sun by Oracle was expected to close by the summer, but the deal has hit a snag in the form of European regulators that have been unwilling to approve the merger over fears that the new colossal company would snuff out competition. Sun’s business has been in dire straits for a while, with Oracle executives stating that Sun is losing $100 million a month.

Sun has stated that the job cuts will take place over the next twelve months, but a company spokesperson also confirmed that job cuts are already underway but declined to comment on how many jobs have already been eliminated. The company has also stated that the job cuts will also incur charges of anywhere from $75 million to $125 million over the next several quarters.

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