Sun Microsystems Inc., the world’s fourth-biggest maker of server computers, will incur costs of $100 million to $150 million over the next several quarters to trim its workforce.
Most of the costs are for severance pay and will be recorded from July to December, Santa Clara, California-based Sun Microsystems said on Tuesday in a regulatory filing. The company also will reduce the size of its board to 10 members from 11.
Chief Executive Officer Jonathan Schwartz, who replaced co- founder Scott McNealy last year, has already fired 3,700 workers to make the company profitable. Last week the company reported its first annual profit in six years. Sun’s filing didn’t specify how many workers would be included in the new job-cut plan. Spokeswoman Kristi Rawlinson didn't immediately return a phone message.
