Sun Layoffs to Happen This Week
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IBM had layoffs last week. This week, it's going to be Sun Microsystems. It's a tough time to be selling servers at Sun. The news of Sun layoffs had been known as far back as November of last year (as part of a 6,000 employee reduction in staffing), but it appears that the company is now confirming the pink slips of 1,500 workers for this week. In January, Sun let go 1,300 workers. The jobs appear to be mostly on the sales side, with a good portion of sales moving to a more indirect model. Here's some more info from the IDG news article: Sun said the layoffs affect staff at all levels, including vice presidents and directors. While rumors of a potential deal between IBM and Sun has been ongoing for several weeks, nothing has really happened publicly to date, except for layoffs for both. IBM laid off nearly 5,000 workers across the company, with much of the work being given to IBM employees outside the U.S., much of it in India. Heidi N. Moore of the WSJ postulates that it's not surprising to see the two companies waiting it out and working behind the scenes, while Sun's stock price is taking a hit. IBM's remains relatively close to what it was during the first news of a deal being worked. Is it due diligence or waiting for the price to drop so IBM doesn't look like it's overpaying while it cuts 10,000 U.S. jobs? The most interesting bit of the Sun layoffs comes from a research note from financial analyst company Wedge Partners (which told IDG) that suggests that sales performance "has been particularly ineffective in the current quarter." Well, I guess when you tell sales people you are going to can them and replace with the channel coupled with the news that the company could be gearing up to be sold to IBM, there is little room for incentive. Hard to do business when the guys you've been running into at client meetings for years may be positioned to replace you. |
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Comments (1)
I am so sorry about your SUN jobs. I urge you to join 10s of thousands of IT professionals in a letter campaign underway to members of Congress. It is easy to find your representatives' names on senate.gov and house.gov. It may not save your old job but just might save your NEXT job. Here is a message you can cut/paste: I support Congressional action to bar access to Stimulus to IT companies laying off highly-skilled Americans and offshoring jobs overseas while 12 million Americans are unemployed. I urgently appeal to you to call for Congressional Hearings on the IT industry’s practice of offshoring as it relates to the economy and national security.
Posted by annonymous | March 31, 2009 3:11 PM