Sun Looks to Cut Staff After All

Company plans to close one campus as part of restructuring.
It looks like some heads will roll at Sun Microsystems after all, despite repeated promises from new CEO Jonathan Schwartz that cuts would not happen. The question now is how severe it will be.

The news came during a "fireside chat"-style discussion at the JPMorgan technology conference with Sun's (Quote, Chart) new CFO Michael Lehman, who left the company in 2002 but returned earlier this year.

On the conference call last month where Schwartz was anointed new CEO by his predecessor Scott McNealy, the two said there would be a 90-day review of the company from stem to stern.

That review is almost done, and Sun has gone over every project and org chart within the company and "we are now ready to resize the company," Lehman said.

Still, Sun won't confirm even what he said.

"Sun has been clear about its goal of profitability and better aligning costs with expenses," said Stephanie Von Allmen, a spokesperson for the company. "We will continue to fine-tune our organization, and that can take a variety of forms, but we have not made any announcements in this regard."

Lehman wouldn't give a head count, but said it would be lower than the 10,000 suggested by one analyst. Sun's top executives plan to meet with the board to present their plans for a return to profitability in June and an announcement would be made then.

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