Aug 14, 2007

Sun Micro's Jonathan Schwartz The Genius?

Now that the "no brainer" part has been done; cutting 15% of their workforce and selling off their real estate, can Schwartz deliver.

Sun MicroSystems announced another "restructuring" that will save the company about $150 million a year. Since the company is deliberately vague about giving details on how many or where the cuts will occur, the street estimates that 2,000 jobs will be lost.

From a Barbara Grady article on

"Sun already eliminated 3,700 jobs since Schwartz took over in April 2006. It closed its Newark and Sunnyvale campuses."

"Since there last round of cuts primarily hit the U.S., we can assume that these cuts are also targeting U.S. facilities.

"But in cutting these jobs and real estate costs and boosting sales of its server computers, it tripled its profit margin to 8 percent by its most recent quarter and consequently returned to making money."

From the Boston Business Journal:

"In June, the Boston Business Journal reported that Nordblom Co. acquired Sun Microsystems' Burlington campus for $212 million and planned a remake of 800,000-square-foot property."

"Sun Microsystems said it planned to downsize its presence at the 158-acre campus, which was built in 1998. As part of the sale of the property, Sun Microsystems will remain a tenant but will lease 100,000 square feet less or about 450,000 square feet."