Sun CEO Scott McNealy Steps Down

Following a flurry of rumors, Sun Microsystems on Monday disclosed that Scott McNealy, the company's founder and CEO for the past 22 years, will step down from his chief executive position. Sun COO Jonathan Schwartz will replace McNealy effective immediately.

McNealy's departure comes as Sun reported a quarterly net loss of $217 million as it struggles to increase revenue and market share amidst growing competition from rivals such as IBM. McNealy will remain on as company Chairman and will devote his time to "expanding market opportunities," Sun said in a statement in which it called the change part of an "on-going succession planning process."