As Sun Microsystems waits for the European Commission's (EC) approval to be acquired by rival Oracle, the company said it will have to reduce its workforce by 3,000 during the next year.
Larry Ellison, Oracle's CEO, estimated that as the company awaits the EC's approval of the acquisition, Sun is losing $100 million a month. According to a Securities and Exchange Commission filing, Sun's board of directors decided to go forward with the layoffs because "of the delay in the closing of the acquisition of the company."
This latest round of layoffs makes up about 10 percent of Sun's employee base. After Sun agreed to be acquired by Oracle in April, the two companies thought the deal would have been wrapped this past summer.
For more:
- Financial Times has this article
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