Sun Microsystems to lay off 6,000

Sun is rebuilding its software operation by splitting the division into three new units

Sun Microsystems has added its name to the growing list of tech firms making major job cuts, announcing that 6,000 employees will go as part of a major restructuring of its software operation.

The cuts will affect around 18 per cent of Sun's employees, and result in a reduction in the company's wage bill of between $700m (£468m) and $800m (£535m).

Sun also plans to rebuild its software operation by splitting the division into three new units: application platform software; systems platforms; and cloud computing and developer platforms.

Each of the new departments will have a special focus on advancing the company's open source offerings.

"Today we have taken decisive action to align Sun's business with global economic realities, and accelerate our delivery of key open source platform innovations," said Sun chief executive Jonathan Schwartz.

The vendor has been warning of economic troubles since September, when it highlighted slowing sales in its quarterly earnings report.

The cuts mark another dark chapter in what has already been a brutal season for the technology sector.

Xerox, Micron and Yahoo have all had to make dramatic staff cuts, while retailer Circuit City had to close hundreds of its stores prior to filing for bankruptcy protection.