Sun Microsystems has begun handing out pink slips to 1,300 employees, following up on its announcement in November that it planned to eliminate 5,000 to 6,000 employees or 15 percent to 18 percent of its total workforce in an effort to save an annual $700 million to $800 million.
The first round of layoffs includes vice presidents and directors, the company said in a statement. The majority of reductions in the U.S. and Canada are expected to be completed by the end of this quarter. Currently, Sun has about 33,500 full-time employees.
"Sun continues to make choices to align strategically, geographically and operationally with its plan for long-term growth," the company said in a statement. "We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities."
In addition to its November announcement of employee eliminations, Sun also said it was restructuring its organization.
Sun said it was aligning its software organization into new business groups: Application Platform Software, Systems Platforms, and Cloud Computing & Developer Platforms, "with a focus on boosting open-source momentum and growing new sectors of the market who view technology as a competitive weapon," the company said.
Sun is set to post second-quarter financials Tuesday.
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