Job Cuts Not Sun CEO's Priority

SiliconValley.com on April 26, 2006

New Sun CEO Jonathan Schwartz won't have much time to enjoy his new corner office. Already, analysts are beginning to grumble that Schwartz may not have what it takes to turn around Sun following his recent announcement that he would not lay off as many employees as Wall Street expected. With fewer job cuts, Schwartz will face increased pressure to cut operational costs and find new areas for business growth, analysts say. Though some analysts had predicted that Schwartz might eliminate as many as 9,500 of Sun's 38,000 jobs, it now looks as if the number will be somewhere between 3,800 and 5,700. Schwartz lacks the kind of turnaround experience exhibited by HP CEO Mark Hurd, a Wall Street darling, other analysts say.