Sun’s product launch party ends with 1000 job cuts

SAN FRANCISCO: Network computer maker Sun Microsystems said it is laying off about 1,000 workers, or less than 3 percent of its work force, as the company seeks to improve its financial results.

Sun spokesman Andrew Lark said that roughly 1,000 jobs will be cut, and that is continuing to invest in other areas of the company.

Santa Clara, California-based Sun Microsystems has about 36,000 workers worldwide.

The move comes as the company, which has struggled in the tech downturn more than its principal rivals, unveiled this week a new and simpler way of selling and distributing its business software and rolled out new computer servers and workstations.

Sun said in a statement that the job cuts were aimed at helping the company to achieve its fiscal 2004 "goals of growing revenues, improving profitability and increasing shareholder value."

"This is no different than a standard business realignment," said Sun spokeswoman May Goh Petry, adding that the job cuts are worldwide.

Sun undertook a layoff of 3,900 employees in October 2001 and another layoff of 4,400 was announced in October 2002.

Sun, a longtime critic of Microsoft Corp., the world's largest software company, rolled out four new software products this week, including a desktop software package called the Java Desktop aimed at Microsoft.

The desktop, formerly code-named Mad Hatter, runs on any personal computer and has a familiar look and feel that Windows users would recognize, Sun said.

In July, Sun reported quarterly profits that fell 80 percent as revenue declined for the ninth consecutive quarter amid weak demand for computer servers, which run computer networks and help to power the Internet.

© Reuters