Sun Microsystems India is set to lay off about 200 employees from its India operations. The employees are mainly from the non-technical domain. Some top level slashing is also expected to be undertaken, sources told TelecomTiger.

The development will mark the second job slashing for the company in the past few months as it is reported to have reduced 100 jobs earlier in its India operations.

The good thing about the current job slashing is that Sun Microsystems will offer upto 5 months compensation and that too calculated on the basis of CTC (Cost to Company) for the whole year. Employees are also set to be compensated for the bonus amount, reveal sources. This appears a very generous move by the company as its counterparts and other players in the industry have fired employees without compensating them adequately.

The move is believed to be taken to gear up for any possible crunch in future and does not necessarily imply that the company is facing any kind of business or rather financial problems. 

Additionally the move to engage in talks with IBM is believed to be originated from pressure from a section of the investors based out of USA.A potential barrier to the deal maybe from the fact USA strictly prohibits any deal considered to be leading to monopolistic market conditions.

Sun Microsystems alongwith IBM, HP, Dell is considered to be among the top players in the global server market.