Sun Microsystems Cuts 3,000 Staff Due to Delays
Sun Microsystems today said it would lay off a further 3,000 employees because of the delays in closing the deal with Oracle.
The Wall Street Journal reports that Sun Microsystems will cut roughly 10 percent of its workforce and, according to an SEC filing, the layoffs will result in charges ranging from $75 million to $125 million over the next several quarters.
Back in April, Oracle announced that it had agreed to buy Sun for $7.4 billion, or $9.50 per share. However, here we are months later and the deal has yet to close. This is due to delays at the hands of European Union Antitrust regulators who are busy looking into whether the acquisition would give Oracle a database software monopoly.
Reuters cites Oracle CEO Larry Ellison as saying Sun is losing about $100 million a month because of the delays.