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EDITIONS
Thursday, 17 October, 2002, 20:44 GMT 21:44 UK
Sun cuts 11% of workforce
Detail from Sun Microsystems website
Sun blamed tough economic conditions for the redundancies
Computer maker Sun Microsystems has announced another round of job losses, after failing to make a profit in the last three months.

The US group said it would cut around 11% of its workforce, its second major cut in its workforce in just over a year.

The group said it would also consider further cuts if business did not improve.

The California-based company blamed slow demand for its computers for its results, which nonetheless beat market fears.

Reversal of fortunes


It hasn't been enough to counterbalance revenue shortfalls caused by the protracted economic downturn

Steve McGowan, chief financial officer

Sun Microsystems, which makes computers and software to manage networks, said it would cut 4,400 workers from its 39,400 workforce and also look to shed excess work space.

The cuts had been expected after peers had already been forced to shed vast numbers of jobs.

The group's chief financial officer Steve McGowan said: "Sun has done an outstanding job in maintaining fiscal discipline, but it hasn't been enough to counterbalance revenue shortfalls caused by the protracted economic downturn."

In the three months to September, the company reported a loss of $111m (71m), compared with a loss of $180m in the same period a year ago.

In the three months to June, Sun had made its first profit in over a year, but warned that it was likely to return to a loss as corporate spending on computers slowed.

Cuts on the cards

News of the job cuts cheered the market, with shares rising 14 cents to $3.13 in after hours trade.

The company's shares have lost about 75% of their value in the last year as the tech boom crumbled.

Last October, the company announced its first significant redundancies, cutting almost 4,000 jobs. But some analysts had forecast that would not be enough.

Since then it has seen the departure of a number of executives, including chief operating officer and president Ed Zander who resigned in May after 15 years with the company.

See also:

01 May 02 | Business
10 Feb 00 | Microsoft
13 Mar 02 | Science/Nature
08 Mar 02 | Business
18 Jan 02 | Business
04 Oct 01 | Business
30 May 01 | Business
24 Jan 01 | Business
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