Sun to Cut Workers, Blames Economy, Attacks
As a result of the 9 percent reduction in workforce, the company said it is expecting to record a charge of approximately $500 million in the fiscal second quarter.
The Palo Alto, CA-based provider of hardware, software and services that powers enterprises and network computing, said based on preliminary data, earnings on an operational basis will be a loss in the range of $0.05 to $0.07 per diluted common share.
"The computer industry is continuing to consolidate and downsize itself," said Scott McNealy, Sun's chairman and CEO. "In addition, the events of Sept. 11 have impacted us all. Things were tough with the economy before, but now we are facing increasing uncertainties both in the U.S. and globally. To ensure the long-term health of the business, we are making structural changes to the capacity of the company."