Sun to Shut U.S. Operations for a Week in Bid to Cut Costs

In a striking effort to reduce costs in the face of slowing sales, Sun Microsystems (SUNW Quote) is shutting down all of its U.S. operations for an entire week, the company confirmed Wednesday.

Sun has previously communicated the plan to its employees in an internal memo. The shutdown will take place the first week of July, thus including the already planned holiday July 4. Sun's operations outside the U.S. will "be doing something similar," a spokesperson said.

Last week Sun reported fiscal third-quarter sales 20% below the prior quarter's level. Earnings, meanwhile, were hit even harder, falling 50% from the second quarter. Accordingly, on the company's earnings conference call, Chief Financial Officer Mike Lehman had indicated that Sun was taking measures to reduce operating expenses. ...