Sun shakes up software divisions
In a massive restructuring, Sun Microsystems has announced a global workforce reduction and alignment of its software organisation into new business groups - Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms.
As part of today's actions, Sun's Board of Directors has approved a restructuring plan aimed at reducing costs annually by approximately $700m to $800million. The plan includes a reduction of approximately 5,000 to 6,000 employees, representing approximately 15 per cent to 18 per cent of the company's global workforce.
Sun expects to incur total charges in the range of $500m to $600m over the next twelve months in connection with the plan, of which it expects to incur approximately $375m to $450m within its current fiscal year 2009.
Sun also announced that Rich Green, its executive vice president of software Rich Green has chosen to leave the company. In a press releasehe was described as ‘an instrumental force in evolving Sun's Software strategy and successful business execution across its diverse portfolio’.