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April 24, 2006 | Comments: (0)
McNealy steps down--I called it a month ago
Sun Microsystems' Scott McNealy is stepping down as CEO, and will be
replaced by Jonathan Schwartz, who had been president and chief
operating officer. Mr. McNealy, who co-founded Sun 22 years ago, has
come under fire in recent years for the company's erratic profits and
what was seen as a reluctance to cut costs. Sun shares jumped nearly 10%
in after-hours trading.
Via WSJ:
http://online.wsj.com/article/SB114590747910134387.html?mod=djemalert
Previously: Rumor Mill: McNealy will be out by April 1
Posted by Dave Rosenberg on April 24, 2006 02:19 PM
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hi dave,
As a very competitive founder, he JUST could NOT let people go. The same thing happened in 2001. 6 months after MS let go of thousands, Sun did NOT do the same. And then they realized.
Jonathan is not going to become a darling within SUN if he lets go of lots of people but he will be wallstreet's darling!!
He needs to balance support from sun, industry, customers and wallstreet and his own conviction/vision for sun.
Good Luck to Jonathan -- this is quite a challening job.
BR,
~A
McNealy is a visionary I truely admire and respect. I say it's time for something new. I look forward to seeing where he lands, wherever it may be, i know he will be a sucess; although in fairness he is probably better suited to run a private company rather then a public one.
I too have trouble letting my people go. Is this a sign of stupidity or loyalty? I say the latter.
Posted by: Reuven Cohen at April 24, 2006 05:30 PM
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