Server computer maker Sun Microsystems announced a restructuring plan to control costs this morning. The process will eliminate 15% to 18% of Sun's workforce at a loss of up to 6,000 jobs. The firm expects to save $700 to $800 million annually as result, but some analysts speculate even this will not be sufficient to get the troubled firm's costs in line. The announcement is one of many over the past few weeks and months, as the economic crisis starts to impact the technology sector more significantly. Sun has no plans for more drastic action such as selling portions of the company, though its shares have fallen more than 80% in the past year.
See "Crisis Spreads to Tech Sector as Sun Plans to Cut Work Force", Ashlee Vance, The New York Times, November 13, 2008