Sun plans cull of 5,000 workers

Sun chief Jonathan Schwartz announced the redundancies as part of a corporate restructure

Sun Microsystems plans to lay off 4,000 to 5,000 employees, according to a new filing with the US Securities and Exchange Commission.

The company did not specify which of its technology divisions or geographies would bear the brunt of the redundancies.

However, chief executive Jonathan Schwartz said in a statement that the company is happy with the performance of its "core technology and channel programmes" including the Java, Solaris, Sun Fire and StorageTek platforms.

The layoffs are part of a corporate restructuring expected to cost $340m to $500m over the next few quarters.

The bulk of this sum is reserved for severance payments. The restructure is expected to result in annual cost savings of $480m to $590m.

A corporate restructuring, the discontinuation of non-strategic product lines and the layoffs were expected as Schwartz announced a review of the company's product line-up when he became chief executive in April. 

"We have worked hard to reinvent Sun's entire product line, from software to systems, storage and services," he said.

"It is on that rebuilt foundation that we are reinventing our business model on a far simpler base and focusing our energies on the automation, energy efficiency and network innovation at the heart of our technology leadership."

Sun disclosed last month that it would close one of its three Silicon Valley campuses. The closure, which forms part of the same restructuring plan, will cost up to $150m, the firm said.