Sun Microsystems, Oracle Delay Merger

October 21, 2009

Recession has taken its toll on most companies in the US. Sun Microsystems is one of them with a proposal to take out 3,000 employees for the next on year which will cost them from $75 million to $125 million. It will delay its supposed merger with Oracle.

The US Securities and Exchange Commission said that the Sun had made drastic cuts. “The board of directors of Sun Microsystems has approved a plan to better align the company's resources with its strategic business objectives, including reducing its workforce across the North America, EMEA, APAC and Emerging Markets regions by up to 3,000 employees over the next 12 months,” according to the filing.

The European Union delayed the approval of the merger because of the layoffs. Sun has already had major losses for the past two quarters. In November, they already laid off 6,000 employees.