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Struggling computer and software maker Sun Microsystems to cut

Posted on: Thursday, 18 September 2003, 06:00 CDT

SAN JOSE, Calif. (AP) -- Troubled computer and software maker Sun Microsystems Inc. plans to cut an additional 3 percent of its work force, or an estimated 1,080 jobs, in an effort to return to sustained profitability despite sagging sales.

``This strategic realignment is an ongoing business practice that allows us to allocate resources to meet the highest priorities of the business,'' the Santa Clara-based company said in a statement Thursday.

Sun has had several rounds of layoffs since 2001. Major cuts included trimming 11 percent of its work force, or 4,400 jobs, in 2002, and 10 percent, or or nearly 3,900 jobs, in 2001.

At the end of the last quarter, Sun reported it had 36,000 employees. At the end of fiscal 2001, by comparison, it had 43,683 workers.

Spokeswoman May Goh Petry said the bulk of the cuts would be made in the current quarter. She declined to specify which areas are targeted for cuts. The company said it also plans to hire in certain high-growth areas, again declining to give specifics.

``While we might be eliminating some jobs, we'll transferring many of those positions into areas of growth and investment for us,'' she said.

The company has been struggling to reinvent itself as its high-end -- and high-profit -- equipment has been challenged by systems running the free Linux operating system and less expensive but increasingly powerful commodity hardware.

Sun's revenues have now fallen for nine straight quarters, and it is now offering its own Linux-based systems in addition to high-end machines.

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On the Net:

Sun: http://www.sun.com

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