Are Layoffs Ahead for Sun's Broomfield Workers?

October 2009

Three-thousand Sun Microsystems Incorporated employees---about 10 percent of the company's workforce---will soon lose their jobs. That's according to several news organizations, including The Wall Street Journal, which does not report whether any of hardware and software maker's 2,900 employees in Broomfield will face the ax to pave the way for a takeover by Oracle Corporation. It's better, probably, if Oracle doesn't have to play the bad guy, even if CEO Larry Ellison recently seemed to rub in Sun's demise by noting the company was losing about $100 million a month. The workforce reductions will help "better align the company's resources with its strategic business objectives," Sun officials say, in a filing with the Securities and Exchange Commission (via Boulder's Daily Camera). Layoffs are expected to occur during the next year. Heather Bellini, an analyst at ISI Group, notes that Sun's business has become weaker since the Oracle purchase, adding that Oracle is likely to cut more jobs after the purchase is finalized. "We think it will be a lot higher than 10 percent," Bellini, who advises investors to buy Oracle's shares and doesn't rate Sun, tells Bloomberg.