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Sun eliminates 1,300 jobs as part of larger layoff plan

Also today, IBM began making cuts

January 22, 2009 12:00 PM ET

Computerworld - Add Sun Microsystems Inc. to the list of tech companies rolling out layoffs this week.

Sun today notified 1,300 employees that they are losing their jobs, part of an initial wave of layoffs that may reach 6,000 before the cutting is finished.

Sun, in a statement, said that the "reductions were made across all levels, including vice presidents and directors."

Sun had announced in November that it would cut its workforce; the only mystery was exactly when those cuts would begin. But these layoffs are only part of a job-cutting wave that began hitting the tech industry last year.

Most recently, Microsoft said today that it is laying off 1,400 employees, and as many as 5,000 over the next 18 months.

In November, Sun announced it was cutting 15% to 18% of its workforce as part of a restructuring to save anywhere from $700 million to $800 million annually. Sun today confirmed its plan to continue with the previously announced restructuring.

"We believe the restructuring will result in a more efficient coverage model with resources aligned to growth opportunities," the company said in its statement. "We believe the number of positions that will be eliminated, when combined with the other cost cutting measures and organizational changes being implemented, will put the company on track for improved financial performance."

IBM is also laying off employees this week, according to The Alliance@IBM in Endicott, N.Y., an employee union. The group said layoffs are now going on and is asking employees to post messages, which are anonymous, about actions the company is taking.

Wrote one: "I was whacked yesterday. 29 years 10 months."

IBM officials could not be immediately reached for comment.

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