Company Gets $1.6B, Fires Workers

How’s this for an odd juxtaposition: MSNBC/AP

Struggling server maker Sun Microsystems Inc. accepted a $1.6 billion settlement from Microsoft Corp. and said Friday it plans to cooperate with its longtime nemesis. (MSNBC is a Microsoft-NBC joint venture.)

agreement was accompanied by an announcement by Sun that it is cutting 3,300 jobs and that its net loss for the fiscal third quarter will be wider than expected. The cuts represent 9 percent of its total work force of more than 35,000.

One would think that, having $1.6 billion more in its coffers than yesterday and freeing itself from a costly legal struggle would be a good thing! Unless the 3,300 jobs were all lawyers. . . .

FILED UNDER: Economics and Business
James Joyner
About James Joyner
James Joyner is Professor and Department Head of Security Studies at Marine Corps University's Command and Staff College and a nonresident senior fellow at the Scowcroft Center for Strategy and Security at the Atlantic Council. He's a former Army officer and Desert Storm vet. Views expressed here are his own. Follow James on Twitter @DrJJoyner.