Sun Microsystems to cut 3000 jobs
The European Union antitrust regulators have held back the deal citing that the acquisition would give Oracle a database software monopoly. Earlier in April 2009, Oracle has acquired Sun Microsystems.
The company is reportedly aiming to cut 10% of its workforce, which may affect its employees in North America, EMEA, APAC and emerging markets regions. Since November 2008, the company has cut around 6,000 jobs.
Earlier Oracle CEO Larry Ellison has stated that Sun is losing about $100 million a month because of uncertainty about the computer maker's future as European antitrust regulators pursue an in-depth probe of the transaction.
According to media reports, IBM and HP, both considered competitors for Sun, have already benefited by the deal uncertainty. The EC is expected to reach a decision on the deal by November 19, 2009.
Reuters quoted Cross Research analyst Shannon Cross as saying: “Sun's business is really hurting.”
Neelie Kroes, European commissioner for competition, said: “The commission has an obligation to ensure that customers would not face reduced choice or higher prices as a result of this takeover.”
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