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Sun expands software staff cuts

Stephen Shankland CNET News.com

Published: 23 Feb 2005 09:20 GMT

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Sun has laid off employees in its software group, part of a gradually expanding job-cut programme by a company that has yet to return to consistent revenue growth.

Sun spokeswoman Stephanie Von Allmen confirmed the 15 February cuts but declined to say which part of the company's software group was being hit. She said the company isn't backing off from its software commitment, which has gained prominence at the company with the 2004 elevation of former software chief Jonathan Schwartz to president and chief operating officer.

The cuts were part of an expansion of an earlier 3,300-employee layoff announced the day Schwartz was promoted. In October, Sun increased the number to 3,500. Now it has reached 3,600, Von Allmen said.

Sun posted an $18m profit for its most recent quarter, but the Santa Clara, California, company's revenue declined. Among the company's plans for restoring itself to prominence is a heavy emphasis on servers with AMD's Opteron processor, the OpenSolaris project to build an open source community around the company's version of Unix, a partnership with Fujitsu around Sparc processors, and a simplified software pricing strategy.

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