SAN FRANCISCO - Sun Microsystems Inc., which has struggled in recent years to remain profitable and boost revenue, said it would cut as many as 5,000 jobs, or 13 per cent of its workforce, over the next six months.
Sun also said it set a goal of operating income of at least 4 per cent of revenue for its current fourth fiscal quarter and at least 10 per cent over the long term.
Santa Clara, California-based Sun said that the job cuts, among other moves, should yield annual savings between $480 million and $590 million, with the full impact expected to be in the fourth quarter of fiscal 2007.
Sun expects restructuring charges of $340 million to $500 million over the next several quarters, with the majority expected in the fiscal quarter ending June 30, 2006, the company said in a statement.
For the first time in many quarters, Sun issued a revenue forecast, saying it expects fiscal 2007 revenue growth in "the low-to-middle single digits" and a gross margin of "around 43 per cent."
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