Sun’s (SUNW) Shares Don’t React To Job Cuts

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By Douglas A. McIntyre Published
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Sun (SUNW) filed a document with the SEC that indicated that it would make more job cuts. About a year ago, Sun fired almost 5,000 people, about 12% of its work force.

Sun’s shares were flat on the news The company said that it intends to take charges of $100 million ot $150 million for the cuts.

The company’s shares might have gone up on the filing. In the last quarter, sales for the server company were flat, but the company had a small net income, mostly due to cost savings. Further work force reductions might drive better margins.

But, Wall St. seems to have seen through that smoke. If Sun’s revenue is going to recover, it cannot continue to lay off staff. At some point it will have to get down to a core level of personnel if it plans to sustain growth.

More departures often mean that a company doesn’t believe that it can expand in future quarters.

Douglas A. Mcntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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