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Sun to Cut 5000 Jobs

codemachine writes "In one of Jonathan Schwartz's first acts as CEO, Sun Microsystems has announced that they are cutting up to 5,000 jobs over the next 6 months. The company plans to sell property it owns in Newark, Calif., and to exit leases at a site in Sunnyvale, Calif. Analysts will be pleased that Sun has finally taken steps to cut costs, but what will this mean for the future of the company?"

23 of 214 comments (clear)

  1. Re:Doh by Anonymous Coward · · Score: 1, Insightful

    I think I would find a new friend!!! :)

  2. You know what this means... by Billosaur · · Score: 5, Insightful

    5000 disgruntled ex-Sun employees band together to form a new company, Black Hole, billing themselves as the "anti-Sun" development company and creating a programming language called "Borneo." I can see it coming; it's written in my tea leaves.

    Let's hope Sun gets smart and gets rid of the excess layers of middle management and their entire marketing staff, along with a few maintenance guys. If they let go too many programmers, the competition may reap a windfall.

    --
    GetOuttaMySpace - The Anti-Social Network
  3. The company?!?!? by Ossifer · · Score: 2, Insightful
    ...but what will this mean for the future of the company?
    What about the future of 5,000 human workers?
    1. Re:The company?!?!? by Kohath · · Score: 2, Insightful

      What about the future of 5,000 human workers?

      They'll go get new jobs. We have a great economy and we're at more-or-less full employment.

    2. Re:The company?!?!? by Brushfireb · · Score: 2, Insightful

      I'm glad you care about those 5000 workers. Thats nice.

      Unfortunately, its also stupid. The company must survive to provide jobs for the other 25,000 people that work for Sun. If firing these 5000 workers will allow them some much needed restructuring of operations, then the rest of their workforce will be better off for it, and will allow them to make money and eventually hire more people.

      Certainly, its not fun or easy that 5000 people lose out so 25000 people can gain. However, Sun is really not a place where executives are ridiculously overpaid. Hopefully some of those 5000 are excess middle management.

    3. Re:The company?!?!? by supabeast! · · Score: 3, Insightful

      "What about the future of 5,000 human workers?"

      Sun has been going down the tubes for years, any idiot could have seen this coming - especially once it was announced that McNealy was stepping down as CEO. Sun employees have had plenty of time to find jobs at profitable, well-run firms, or to at least stash away money to live on. I see little reason to worry about their futures - anyone getting canned has had plenty of time to jump ship.

    4. Re:The company?!?!? by drooling-dog · · Score: 5, Insightful
      I'm glad you care about those 5000 workers. Thats nice. Unfortunately, its also stupid.

      Well, you know, it's possible to have a little compassion for the people who are going to lose their jobs without suggesting that Sun was wrong to let them go. Nowhere in the parent post was it implied that the RIF was wrong or even unnecessary. So why all the righteous indignation? It's one thing not to have empathy, but quite another to be actively offended by it in others.

    5. Re:The company?!?!? by Richard+Steiner · · Score: 2, Insightful

      If the economy is so great, why are so many former programmers and sysadmin types working at my wife's place of employment (a call center) for $12-15/hour?

      Cross-sector numbers across an entire country are one thing, accurate numbers pertaining to a specific industry and location are quite another...

      --
      Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
      The Theorem Theorem: If If, Then Then.
    6. Re:The company?!?!? by WindBourne · · Score: 3, Insightful

      Under employment is not the same thing. And with this admin, underemployment is probably at a peak.

      But keep in mind that this is result of the awesome economy that we had under clinton. During his time (with his opening of the internet), we saw such great expansion. Basically, the tech jobs that were created were way too many. Many ppl who came in had no real knowledge (a training class in windows sys-ad or programming is NOT real knowledge) and really did not gain much experience. Most have been forced into other jobs as incompetent companies went under.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  4. Re:Nobody Cares by kevin_conaway · · Score: 5, Insightful

    Nobody cares about what happens to the workers who get fired. You're talking to (mostly) Americans here... Unless its thier job being cut, they just dont care... :-(

    And honestly, why should we care? What do you expect us to do about it? They're doing what they feel is right to put the company back on track.

  5. It's a good thing: time to refresh things by postbigbang · · Score: 4, Insightful

    Sun's not-invented-here madness has kept them from overcoming the McNeely mindset.... one that pushed SGi recently into Chapter 11. I, for one, believe that both Solaris and uSparc technologies bring a lot to the table.

    Their feistyness has been one of their biggest stumbling blocks for years. This gives them a chance to rebuild, cut some of their more insane projects and financial bleeding, and get back into action.

    Sun has very goofy, fence-straddling legacy madnesses: Java programs, licensing issues, relationship issues, Microsoft litigation legacies, and all sorts of baggage. The faster they shed the baggage and go with producing assets, the better, IMHO.

    --
    ---- Teach Peace. It's Cheaper Than War.
  6. Re:Will they still be powering eBay? by Spectra72 · · Score: 2, Insightful

    You don't think the remaining 32,000 or so employees are enough to keep the lights on?

  7. Re:Nobody Cares by drooling-dog · · Score: 2, Insightful
    And honestly, why should we care? What do you expect us to do about it? They're doing what they feel is right to put the company back on track.

    Point proven, I'd say...

  8. business model? by b17bmbr · · Score: 4, Insightful

    what exactly is Sun's business model? java is free, their hardware is expensive, linux is also free, and thin clients are great but not what the market wants. are they a hardware company like apple, or a software company like microsoft? or are they a services company?

    --
    My problem? I was perfectly gruntled, until some numbnuts came by and dissed me.
  9. Re:Nobody Cares by EastCoastSurfer · · Score: 3, Insightful

    Why should we care? Of course it sucks to lose your job, but what do you expect everyone else to do? Do you want the gov. to step in and support Sun?

    IMHO, Sun has been completely mismanged for a long time and these cuts might not even be enough to save them. It's a good thing that they are finally cutting people in order to try to stay open and continue providing jobs to those who are left. The people who get cut will presumable go out and find another job. Such is life...

  10. Re:Nobody Cares by Anonymous Coward · · Score: 3, Insightful

    Exactly. A whole lot more than 5,000 jobs will be lost if the whole company goes bankrupt. It is not always entirely the employees fault, but look around you, how many people in your office are expendable? As in, if they were not around, the work would not get done. I am guessing it is a very small number of people. As someone who is working in a group that used to be a part of a small/medium sized company that was swallowed by a giant one, I have seen the number of non-essential employees balloon. Managers get budgets, and they want to build empires. So they hire people when the money becomes available, not when the right person becomes available. This leads to a pile of pretty good people, not great ones who can lead the system and innovate.

    And honestly I have been marginalized down to a non-essential employee these days. I spend about 40% of my time doing work related to audit, documentation, and corporate policy requirements, not doing new development or fixing bugs. If I got laid off tomorrow, a whole lot of knowledge would be lost, but life for the company would go on.

  11. Re:Nobody Cares by Fred_A · · Score: 5, Insightful
    They're doing what they feel is right to put the company back on track.

    Nnot exactly, they're doing what they feel is right to maximise shareholder value which doesn't necessarily have to be the same thing.
    --

    May contain traces of nut.
    Made from the freshest electrons.
  12. Re:Sun - Corporate mismanagement at its finest by Anonymous Coward · · Score: 1, Insightful
    I'll second that! Now that McNealy is no longer running the show, maybe Schwartz will finally do things right. Reality is that Sun put a toe in the Linux waters, got scared, and ran away.


    Wholeheartedly agreed here.

    Meanwhile, that gave the competition a chance to build up their Linux offerings and eat Sun's lunch. They might not have wanted to compete with their Sparc biz, but the competition sure didn't hesistate to it for them. They need to ditch the chip biz and the Solaris biz, and refocus on their strenghts, putting together rock solid hardware and backing it up with second to none service.


    Okay, in the low end (4 cpus and under) Linux has made some inroads, but being related to a Sun employee I know for a fact that at the midrange and high end they are destroying HP and Dell in our market, and IBM is holding their own with AIX and Linux. When Linux is as robust as Solaris on Sparc we'll talk, but no matter what the fanbois say it currently isn't. Eighteen year old kids running OpenSolaris on marginally compatible hardware don't count. Enterprise Sun boxes like the E25k have uptimes that put linux servers to shame, unless of course you drop a thermite grenade on the system in which case you'd better be clustered. My own experience with their enterprise hardware/software has been good as long as you have a support contract. If you don't, too bad.

    The Sparc still scales much better than the Opteron.. for now. I've heard rumors that there are more heavy-hitter Opteron boxes on the way, and while they will run Linux the push will be for Solaris. Bring em on.

    Commercially supported Unices are not evil, open source dogma notwithstanding. I had to lobby my ass off to get Linux into my shop, and even then I had to go with RedHat AS running on Dell with a support contract. Not that this is the fault of the Linux community, but the support from both suck compared to what we had with Sun. Our next hardware refresh is due next year and it is my intent to put Solaris on AMD hardware in play.

    I wouldn't say Sun is down and out yet, but if they don't stop fighting the commodity components / Linux trend, they are going to eventually follow in SGI's foot steps.


    I think SGI was just a tad bit more focused on a single area than Sun. If you want to make a comparison I'd put the McNealy fronted Sun in the same category as DEC. Hopefully Schwartz will put out the fire.
  13. Re:Sun - Corporate mismanagement at its finest by buysse · · Score: 4, Insightful
    Jebus, you people (linux zealots) are nuts. Maybe now, with the current state of the kernel, could it start replacing Solaris in some of the places it really shines. Maybe. Probably not.

    Here's the thing. It's really hard to make Solaris crash. I can throw a system load of 80 at a two-processor box and still get a response (enough of one to fix the problem causing a load of 80). It can run on a 216-processor single-system-image NUMA box efficiently, including some "self-healing" properties. Bank of memory throwing correctable ECC errors? Map it out. Processor that has ECC errors in it's cache? Map it out. Hotswap the board containing the processor or memory without a reboot. Users don't notice. On lower-end hardware, like the new AMD-based boxes, it will just map out and stop using the offending hardware until you have a chance to fix it. Isn't it better to have a machine drop from 8G of memory to 4G of memory until you can schedule downtime rather than just crash?

    There's another, even larger factor. The government (one of Sun's biggest customers) likes Solaris. A lot. And they especially like Trusted Solaris, for which there's basically no *certified* comparable Linux distro. There's a lot of stuff painted Army green or Navy gray that has Solaris machines inside.

    Did Sun mismanage things? Hell, yes. Was the major problem that they didn't throw out 20 years of engineering work to switch to Linux? Hell, no.

    --
    -30-
  14. Re:I am suprised by tommasz · · Score: 3, Insightful

    I work for a company (not Sun) that makes high-priced, highly reliable machines that competes with other companies that make low-priced, less reliable machines. They're beating us in every market. Customers simply value low acquistion cost over low cost of ownership. It's annoying and counterintuitive, but I've seen it happen over and over again. Sun is facing that situation and you can see what has resulted. Like my company, they've gone from a market maker to an also-ran. It's inevitable, or seems so. And it has nothing to do with quality or capability.

    We're due for a major RIF, too. Too many employees for the level of business, I'm afraid.

  15. Re:Don't worry. The economy is boomin'! by Anonymous Coward · · Score: 1, Insightful

    Hey, didn't you get the memo? Bush has been responsible for creating six million new jobs in the service sector. Just ask Wendy's, KFC, McDonald's, or Burger King. And hey, if you are an illegal alien, the jobs outlook is even brighter.

  16. Re:Sun - Corporate mismanagement at its finest by Decaff · · Score: 2, Insightful

    Funding SCO to sue the linux world is undermining it. And that is just one example. I suspect that once everything settles down, we will see more.

    That is just rampant FUD. Sun did not fund SCO. They purchased SCO licenses to avoid legal issues. Big deal.

    Now, as to your examples, Java for Linux came from the Blackdown group (which sun then took tried to take credit for). Sun has not really done much in way of support of Java off of Solaris and Windows.

    Nonsense. Sun provided a lot of help with Java from Blackdown, and they can certainly claim the credit for much of the code. They have contributed substantially to all Java releases since 1.2 on Linux. How exactly is helping with Java on Linux supposed to be anti-Linux?

    Likewise, Staroffice started on Linux, sun bought it, and now is using this to try and break MS's monopoly.

    And that is supposed to be anti-Linux exactly how?

    As to shipping linux, hmmmm. Yeeeaaaahhhhhh. In the same way that MS does apps on Linux. Only when it is a last resort.

    Nonsense. They have been shipping Linux and shipping apps for Linux for years.

  17. Re:Sun - Corporate mismanagement at its finest by Anonymous Coward · · Score: 2, Insightful
    That is just rampant FUD. Sun did not fund SCO. They purchased SCO licenses to avoid legal issues. Big deal.
    I was working at Sun when they paid... the story went from "we bought something from them but we can't really tell you what it is at the moment" to "we paid for their know-how in x86 drivers development for the next Solaris x86 release" over a couple of days. Now the story is "purchased licenses to avoid legal issues"... Keep in mind that this is the company that paid through the nose to bury Cobalt...

    Food for thought:
    -Didn't Sun co-author SysV Release 4?
    -Didn't they already have a license covering multiple architectures? (including x86)

    And now the real head scratcher... they publish the source code of an entire SysV unix and they don't get sued by SCO?