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Sat, Oct 06, 2001 - Page 21 News List

Sun may fire 20% of its workers

DOWNTURN One analyst says that layoffs now appear inevitable for the server-maker as sales sagged, shares lost two-thirds of their value and rivals already cut their payrolls

BLOOMBERG , PALO ALTO, CALIFORNIA

Sun is expected to lose US$0.04 a share in the September quarter and to earn US$0.01 in the December period, according to First Call. The company will report results on Oct. 18.

Other analysts agreed that the results make firings likely.

"It's definitely on the table," said Megan Graham-Hackett, a Standard & Poor's analyst who rates the stock a "hold" and doesn't own the shares. "With the muted sales outlook, we're kind of surprised they didn't do it sooner. They've been kind of crying for it."

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