Sun Microsystems have announced, in their preliminary third quarter results, that they will make a net loss in the region of $790 million on revenue of approximately $2.65 billion this quarter.
This is due to a $200 million restructuring charge and a $350 million tax charge arising from an increase in the valuation of the company.
The restructuring charge is part of a plan by Sun to cut it's workforce by 3300.
Scott McNealy, Chairman and CEO said,
"We are resizing the company to better align our cost structure."
The full cost of this restructuring is expected to be $450 million dollars and will be absorbed by the company over the next few quarters, according to a statement they made today.
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