We thought that the days of massive layoffs are gone but no, it is not the time yet to breathe a sigh of relief.
There is more bad news for Sun Microsystems workers as 3,000 people will lose their jobs in the next coming few months. End of last year, the company already announced a massive layoff involving more than 5,000 workers.
The 3,000 job cut represents about 10% of Sun’s current workforce.
Decline in revenues and cost cutting strategy have been cited as the reason of the job cuts. Also, the delayed acquisition by Oracle has compounded its misery as competitors, including Hewlett Packard and IBM are now chasing its existing customers as it is settling down with the new owner.
Last year, Sun Microsystems and Oracle agreed a deal which would see the latter, under the aggressive stewardship of CEO Larry Ellison, taking ownership of Sun in a deal believed to be over $7 billion. While the US regulators have given their green light, the European Commission has not given their blessing, fearing the deal would turn Oracle into a monopoly. Both Sun Microsystems and Oracle are anxiously waiting for the EC decision, expected to be early next year.
And oh, the job cut problem may not finish even after the Oracle acquisition. The company has been noted to exercise major job cuts every time it took over giant companies including PeopleSoft in 2005 and Siebel System a year later. Déjà vu is almost certain.