Sources: 'Major' layoffs at Oracle, more on way

Number of people let go on Friday unclear, but one analyst said it could be in the thousands

Oracle made "major" cuts in its global workforce on Friday and more are expected to come, say multiple sources and news reports.

Sales staff and consultants working for Oracle in North America were hit hard, say sources, as well as employees who had joined Oracle recently through its acquisitions of Hyperion Solutions and BEA Systems.

The number of people let go on Friday is unclear. Tim Klasell, an analyst with Thomas Weisel Partners, told Computerworld he thought the layoffs were likely to be in the hundreds or low thousands, rather than the 8,000-figure buzzing about on some blogs and message boards.

Oracle employs 84,000 people globally. An 8,000-employee layoff would amount to about 10 percent of its workforce.

Based on Oracle's history of acquisitions and layoffs, as well as money the company has already publicly said it plans to spend this year on severance, it will likely keep trimming through Spring of 2009.

"I think they're doing this in waves," Klasell said. "It's not great for morale, but you want to make sure you don't cut into the meat."

One Oracle salesperson based in the US said they were called into a meeting Friday and told the news then. More cuts are likely to come, said the salesperson, who asked to remain anonymous.

"They're going to have to. They're not going to sell any [customer relationship management software] in these times," the worker said. "BEA was very bloated and they've got to prune a lot of those people out."

According to a December 22 filing to the SEC (see page 12), Oracle expects to eventually spend a total of US$148 million on severance packages for laid-off employees of BEA, which it bought in January 2008.

While trying to fight off Oracle, BEA changed the terms of its severance in late 2007 so that most employees would receive between 3 months and 12 months of pay and COBRA health insurance if they were laid-off within a year of an acquisition.

Oracle completed its US$8.5-billion takeover of BEA on April 29 of last year.

Oracle has already spent US$38 million on BEA severances, according to its December 22nd filing, as it laid off 275 BEA employees in California, according to state records, and possibly more elsewhere.

Oracle has yet to file a notice with California's Employment Development Department regarding Friday's layoffs. Alerting the department with Worker Adjustment and Retraining Notifications (WARN) is required by California state law.

Join the PC World newsletter!

Error: Please check your email address.

Tags job cutslayoffsOracle

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?