Sun Microsystems plans to lay off up to 3,000 employees amid the delay in its acquisition by Oracle, officials for the Santa Clara, Calif.-based technology company disclosed Tuesday.
The workforce reductions will help “better align the company’s resources with its strategic business objectives,” Sun officials said in a filing with the Securities and Exchange Commission.
The layoffs are expected to take place during the next 12 months, the company said.
It is unknown how many employees at Sun’s Broomfield and Louisville sites would be affected. Sun employs about 2,900 people locally and more than 32,000 worldwide.
Sun officials could not be reached for comment.
Sun could take charges in the range of $75 million to $125 million during the next several quarters as a result of the restructuring, according to the filing.
Oracle is awaiting approval from European regulators to move forward with its $7.4 billion acquisition of Sun. European regulators, who have expressed concern about the database-software market, have until Jan. 19 to make a decision about the acquisition.
Oracle and Sun officials expected the deal, approved by the U.S. Department of Justice, to close this past summer.
A local Sun employee, who asked to remain anonymous for fear of job loss, said Sun’s news was not surprising and that the number of layoffs could be worse if Sun were not being acquired by Oracle.
“What is disappointing is how long the (European Commission) is taking to make a decision and the negative impact this is having on Sun sales,” the employee said. “I’m actually excited by the acquisition and look forward to having it behind us.
“I’m not sure if I’ll have a job or not, but I still see it as positive.”
