The company's shares have fallen 77% this year
The computer hardware maker Sun Microsystems has announced it will shed up to 6,000 jobs in a bid to cut costs.
The move is part of a restructuring plan, which is set to save up to $800m (£540m) annually, and will cost up to $600m over the next year.
The cuts represent 18% of its workforce - the firm is facing slowing demand for its high-end computers.
Sun Microsystems warned in October it would report a wider-than-expected loss in the final quarter of the year.
"The magnitude of the work force reduction is certainly overdue," said analyst Brent Bracelin at Pacific Crest Securities.
The company's shares have fallen 77% this year. They are down 98% since 2000, when the internet bubble burst.
As most industries suffer from the global squeeze on credit and a consumer slowdown, so many technology firms are feeling the effects from a drop in demand.
Sun said it expected to report a net loss for the final three months of 2008 of 25-35 cents a share, surprising analysts who had expected the firm to post a net loss of 16 cents a share.