Sun Microsystems Inc, to combat with financial crunch plans to cut around 18% of its workforce globally.

In efforts to cope with the slumping market and reduction in consumer’s demands, the company has announced to cut 6,000 jobs. The reduction in job posts will save company $700 million to $800 million from annual expenses.

The recent reports by Sun Microsystems showed that company is down by 77 per cent this year. The Silicon Valley is most hurt by this recession and Sun is the third company in Santa Clara, to cut jobs this week.  

Earlier to this, Applied Materials Inc, the largest maker of chip-production machinery, announced plans to cut 1,800 jobs, and mobile-phone chip builder National Semiconductor Corp announced to shed about 5 per cent of its staff.


The reduction in job posts will not force any reshuffling in the leadership positions.

The company is struggling in terms of sales. The sales at Sun fell 11 per cent to $1.76 billion in the period ended Sept 28. Server revenue declined 15 per cent, and dropped in every region except for emerging markets. As per Gartner Inc’s reports, Sun’s revenue fell in the period, while IBM, Dell and Hewlett-Packard all gained.

Renu Singh/ITVoir Network