Sun Microsystems is laying off 5,000 to 6,000 of its employees as part of a restructuring plan that creates new business groups within the company.
The workforce reductionrepresenting 15% to 18% of Suns employeesresults in savings of $700 million to $800 million annually, the company stated in a news release. In addition, Sun is realigning its software products into three new business groupsapplication-platform software, systems platforms, and cloud-computing and developer platforms. The Santa Clara, Calif.-based open-source software company operates in the healthcare industry, providing information technology for providers, payers and government clients.
Sun would not break out workforce reductions by industry segment, but said the layoffs are not an enterprisewide action. The reductions will not be spread equally across the organization, some groups will be pared back while others will have opportunities for new investment, said Kristi Rawlinson, a Sun spokeswoman. The new business groups are designed to align our business around distinct software product categories and are not intended to impact our current focus on industry segments.