SAN JOSE, Calif., April 2 (UPI) -- Sun Microsystems said Friday it would lay off 3,300 people amid huge losses and reported a massive $1.95 billion settlement from Microsoft.
Microsoft will pay $700 million to Sun to settle all antitrust issues, the San Jose Mercury News reported. The software giant will pay an additional $900 million to settle patent litigation and an initial payment of $350 million on future technology exchange royalties.
Sun's job cuts will take place over the next six months or so and represent 9 percent of the work force. Sun has already laid off about 8,500 employees in the past several years. Sun's stock surged on the news, up more than 19 percent at noon at $5.
In a busy day that shook both the Silicon Valley and Wall Street, Sun also promoted Jonathan Schwartz, 38, to president and chief operating officer.
