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Sun Micro to cut jobs in India, rework business strategy
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Sun Micro to cut jobs in India, rework business strategy
19 Jan 2009 Kolkata:Santa Clara-based $13.88-billion Sun Microsystems will lay-off staff in India, as part of its plan to cut 6,000 jobs globally. The
company employs some 33,423 people world-wide. While the company is yet to decide the exact number of job cuts in India, it has no plans for fresh hiring this year.
The company, which operates in more than 100 countries, employs some 1,300 people in India. “The number of job cuts in India will be minimal as the country is projected as one of the emerging markets, along with Brazil, Russia and China. Fresh hiring will hardly be there. We may look at some sporadic hiring as and when required,” Sun Microsystems India vice-president & MD Anil Valluri told ET.
In India, the company is also reorienting its business strategy to earn better revenues during this ongoing recessionary period. “Our focus is now more on public sector units, as there is hardly any cost-cutting in the government sector. Earlier, PSUs contributed some 20-25% of our revenues and the rest came from the private sector. But, in 2009, we expect some 40-45% of our revenues to come from PSUs,” said Mr Valluri.
Incidentally, some of the leading PSU clients of Sun Micro are Punjab National Bank, Vijaya Bank, Dena Bank and others in the banking sector. “The telecom sector is also adding subscribers and, therefore, there is business being generated, too. Public sector telecom giants, BSNL and MTNL, are two major sources of business for us,” he added.
Sun Microsystems is also taking steps to help its customers to tide over the impending liquidity crisis, which in turn will help the company to retain them. “We are extending credit terms for our valued customers. We are also helping them by arranging leasing and financing in this hour of crisis. Open source products are also being offered to our clients to simplify the way the customers manage their storage and save costs at the same time,” the Sun Microsystems India MD said.
While cost-saving for its clients is high on the agenda of Sun Microsystems, the company has also undertaken some cost-cutting exercise internally. “We are reducing our sponsored events, renegotiating tariffs with hotels for our executives and re-looking at travel costs. We are also beefing up our tele-sales activities to bring down cost significantly,” he added.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Sun_Micro_to_cut_
company employs some 33,423 people world-wide. While the company is yet to decide the exact number of job cuts in India, it has no plans for fresh hiring this year.
The company, which operates in more than 100 countries, employs some 1,300 people in India. “The number of job cuts in India will be minimal as the country is projected as one of the emerging markets, along with Brazil, Russia and China. Fresh hiring will hardly be there. We may look at some sporadic hiring as and when required,” Sun Microsystems India vice-president & MD Anil Valluri told ET.
In India, the company is also reorienting its business strategy to earn better revenues during this ongoing recessionary period. “Our focus is now more on public sector units, as there is hardly any cost-cutting in the government sector. Earlier, PSUs contributed some 20-25% of our revenues and the rest came from the private sector. But, in 2009, we expect some 40-45% of our revenues to come from PSUs,” said Mr Valluri.
Incidentally, some of the leading PSU clients of Sun Micro are Punjab National Bank, Vijaya Bank, Dena Bank and others in the banking sector. “The telecom sector is also adding subscribers and, therefore, there is business being generated, too. Public sector telecom giants, BSNL and MTNL, are two major sources of business for us,” he added.
Sun Microsystems is also taking steps to help its customers to tide over the impending liquidity crisis, which in turn will help the company to retain them. “We are extending credit terms for our valued customers. We are also helping them by arranging leasing and financing in this hour of crisis. Open source products are also being offered to our clients to simplify the way the customers manage their storage and save costs at the same time,” the Sun Microsystems India MD said.
While cost-saving for its clients is high on the agenda of Sun Microsystems, the company has also undertaken some cost-cutting exercise internally. “We are reducing our sponsored events, renegotiating tariffs with hotels for our executives and re-looking at travel costs. We are also beefing up our tele-sales activities to bring down cost significantly,” he added.
Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Jobs/Sun_Micro_to_cut_
