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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?"

40 of 214 comments (clear)

  1. Doh by gentimjs · · Score: 2, Funny

    And to think, just yesterday I was pointed at thier jobs page by a friend...

    1. Re:Doh by superpat · · Score: 3, Interesting

      Disclosure - I am a Sun employee. Hopefully unaffected by this move. I am speaking for myself here, not for the company.

      Having said that, this is a targeted cut. Not a cheese-paring '10% everywhere' as has happened in the past. The execs have taked a hard look at our business and decided that we'll focus on what makes sense for Sun. Areas that don't make the cut will be, well, cut. What's remaining will be left intact.

      In fact, my group has open reqs that we are actively filling. Unusually, these are entry-level positions. If you're fresh out of college and want to 'live in interesting times', as the Chinese proverb has it, then take a look.

      Cheers,

      Pat

  2. In other news... by m4c+north · · Score: 5, Funny

    Moon to cut only 1200 jobs (and Marvin gets to keep his).

    --
    Who's your user, program?
  3. 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
    1. Re:You know what this means... by pete6677 · · Score: 2

      How embarrasing it would be if you had to put Sun Marketing Department on your resume. But yes, they must all go if the company is to survive. Java is probably the best example of great technology held back by completely incompetent marketing.

    2. Re:You know what this means... by Anonymous Coward · · Score: 2, Funny

      Nah, they probably have contracts requiring their former employees to bite down on the cyanide capsule implanted in one of their teeth if they're in danger of divulging Sun's secrets.

      Now THAT's a non-compete clause.

    3. Re:You know what this means... by deanj · · Score: 2, Informative

      To this day, I think the CEO of Commodore watched "The Producers" and thought he could do the same thing with a computer.

      The "success" the Amiga had was because of the folks in Engineering, and it's user base.

  4. 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 stirbu · · Score: 2, Funny

      A little sunburn can't harm too much

      --
      :wq
    3. 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.

    4. 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.

    5. 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.

    6. 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.
    7. 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.
    8. Re:The company?!?!? by EastCoastSurfer · · Score: 2, Interesting

      Of course this is anecdotal, but we've been trying to hire someone now for 6 months. Out of all the people we've interview only one was even remotely qualified and he took a different job. Have you thought that maybe those former programmers/sysadmins aren't qualified to do anything else? It's interesting because even through the economy down turn we had from the internet bubble hangover, qualified people I knew had no problems finding good, well paying jobs. Hell, I have 2 job offers open on the table right now. I'm just negotiating on salary...

  5. 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.

  6. Yeah, it sucks by porkThreeWays · · Score: 4, Interesting

    Yeah it sucks badly to lose your job, but it doesn't really mean Sun is going down the hole. It means they are cutting the fat. I don't know how profitable of a company they are, but this is typical of companies that are trying to be all things to all people. It generally means they are going to re-focus on their core market (what actually made them money in the first place).

    I remember when Amazon refocused. They were selling so many ridiculuos (to ship) items, there were many products you could get at a local store that cost more to ship than the product itself!

    --
    If an officer ever threatens to taze you, say you have a pacemaker.
  7. 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.
  8. 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?

  9. Contract Workers are Still Needed by C-Shalom · · Score: 2, Interesting

    What Sun hasn't mentioned is that contract workers are still needed, in great supply. Even during, and after, the job cuts contract workers will be needed. I'm not just talking about 3mo gigs, 1+ year contract workers will be in high demand. If you're damned good, they may even hire you on. All their doing is cutting the fat, not the muscle.

  10. Forget , what about stock options? by SangoDaze · · Score: 4, Interesting

    I took a Unix systems programming class from Sun about five years ago and it was very good. The only downside to the class were the attitudes of some of the Sun employees that were in there. They repeatedly told the rest of the class that they "didn't really need to know this stuff" and that they were "web guys" or "java gui guys" and that the nuts and bolts of Unix were tangential. When they were in the room they spent most of their time talking about the price of Sun's stock. It was hard to imagine how the company was going to go forward when so many employees seemed to think that their core products (Unix servers) were not really worthy of learning about.

    I really like Sun's stuff and I hope that they are able to make a big comeback; but they are not going to do it counting on the folks that were in my class.

  11. 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...

  12. i doubt these jobs are disappearing by castlec · · Score: 3, Interesting

    I know people who work for Sun here in CZ. I also went through their interview process while I was looking for a job in January. Sun decided a long time ago that continued investment in the US was a waste of money. They directly told me they had no interest in having new employees in the US. Their operations have been growing in eastern Europe and India. The layoffs come as no surprise to me at all. They have been creating the redundancy to be able to let go of people for a while.

    --
    When I tell an object to delete this, am I killing it or telling it to kill me?
  13. 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.
    1. Re:business model? by rdavis542 · · Score: 2, Interesting

      The hardware is still top notch, especially the AMD64 boxes that they have produced the last year or two. Screamingly fast in web servers (my companies websitse run completely on sun/solaris/apache/php) and pretty damn stable (close to a year of uptime since being implemented). Solaris 10 Sparc and X86 are also probably the best releases Sun has had for years, ZFS right around the corner, the zones implementation (allowing prod/QA/test all to reside on one box but somewhat seperate from each other), the new services implementation which allow for role-based access control eases the burden from having to start services for app admins/developers. While all this stuff probably isn't new in the Linux front, it's fantastic for large scale companies with numerous layers of IT depts.

  14. In other news... by Funkcikle · · Score: 2, Funny

    Remaining Sun employees to be paid in Grid computing hours.

  15. 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...

  16. Not true by bADlOGIN · · Score: 2, Informative
    Nobody cares about what happens to the workers who get fired.

    Anybody who still or might some day work for said company cares. People still working want to know what happens since companies are creatures of habit when it comes to lay-off policy. If it's 3 hours notice and zero severence, people will step up the job hunt and take just about any offer to get the hell out. If it's a nice pacakge, they'll take stock in thier own finances and weigh the bail-out-now option against it. Anyone who might want to work for the company will shy away for 18 months or so (long enough to forget and/or tell themselves "yeah, there were layoffs, but that was almost two years ago and...").

    Cutting staff is never a good sign and reflects a colossal amount of stupidity on the part of management. In this case, it means "we couldn't figure out how to make money with these 5,000 people". Unless it's 5K worth of mouth-breathing middle-management, it's a sad statement on the company vision & direction from the top and the lack of grasroots channels to communicate from below. Nothing worthwhile coming from the top, nothing able to break through from the bottom....

    The real question is, how much of a pay cut are the top execs taking? What's that you say, zero? In fact you say they're getting fat bonuses? Yeah... that's what I thought....

    --
    *** Sigs are a stupid waste of bandwidth.
  17. 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.

  18. More informative link by gh · · Score: 5, Informative

    Jonathan Schwartz's blog says a lot more behind the decision to cut the 5,000 employees. You may or may not agree with the decision, but it's far more informative about the direction Sun is heading in than the /. submission link.

    http://blogs.sun.com/roller/page/jonathan?entry=ph ase_2

  19. 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.
  20. Re:Stock by bladesjester · · Score: 2, Interesting

    Funny you should mention that. I was watching the news the other day and the stock ticker was going on merrily across the bottom of the screen.

    Most things were down. Sun started out at +.10 when I first noticed. By the time I changed the channel, it was at +.16

    --
    Everything I need to know I learned by killing smart people and eating their brains.
  21. 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-
  22. Explains the new Sun building in Hyderabad, India. by goodgautam · · Score: 2, Interesting

    I Guess this explains the new Sun Microsystems building I see getting built in my city....

  23. 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.

  24. Re:What was the marketing failure? by pete6677 · · Score: 2, Interesting

    Initially, the big problem was they claimed Java could do absolutely anything. Remember the jokes about the Java-enabled toaster? Once Java failed to live up to its initial promises, they failed to market it to a more appropriate environment, like business applications. Businesses and software companies made this popular on their own. Then there was the laughable Java Desktop. Then the licensing issues: are they going to open source it or not? Is Java proprietary or not? Once Sun makes up their mind exactly how they are going to allow Java to be used, companies are going to be a lot more comfortable about it and I see it surpassing .net.

  25. 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.

  26. Re:Sun - Corporate mismanagement at its finest by y2dt · · Score: 2, Informative

    actually Sun did have its own Linux distribution. It's was called Java Desktop and I think it was based on Suse.

    And yes they used their "vaunted engineering skills" to help Linux. Sun is a very big supporter of Gnome Desktop

  27. 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?