Sun Microsystems announced Monday that its longtime chief executive Scott McNealy is stepping down from the helm and will be succeeded by the struggling computer and software company's No. 2 executive, Jonathan Scwhartz.
McNealy, 51, a Silicon Valley luminary for years, will continue as chairman of the company he co-founded in 1982. Schwartz, 40, will keep the title of president.
The changes are effective immediately and are the ``result of Sun's ongoing succession planning process'' the company said in a statement.
The shakeup followed rising speculation in recent days that the Santa Clara company, after years of struggling financially, would announce large-scale layoffs or that McNealy would step down as CEO