Author Topic: Oracle Deal Delay Causes Sun Microsystems To Cut 3,000 Jobs  (Read 2330 times)

Mike

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Oracle Deal Delay Causes Sun Microsystems To Cut 3,000 Jobs
« on: October 21, 2009, 08:35:54 PM »
Oracle Deal Delay Causes Sun Microsystems To Cut 3,000 Jobs

It looks like Sun will be shedding 3,000 jobs, roughly 10% of their workforce, as they continue to lose money while waiting for EC regulators to approve their acquisition by Oracle. Oracle Chief Executive Officer Larry Ellison said Sept. 22 that Sun is losing about $100 million a month as the transaction is delayed by the EU probe.

James Staten, an analyst with Forrester, said, "The longer a cloud of uncertainty hangs over Sun, that drives customers into delays of purchases or into the hands of competitors. This is a very trying time for Sun and Oracle as they wait for an answer."

A spokesman for EU Competition Comissioner Neelie Kroes said today that she "expressed her disappointment that Oracle failed to produce, despite repeated requests, either hard evidence that there were no competition problems or a proposal for a remedy to the competition concerns identified by the commission," and that "a rapid solution lies in Oracle's hands."