Oracle to ramp up cost-cutting, according to SEC filing

The company offered details of expected increases in restructuring expenses

Oracle is planning to escalate cost-cutting activities during the remainder of its fiscal year 2010, which began in June, according to a filing the company made Monday with the U.S. Securities and Exchange Commission.

During its first quarter, which ended Aug. 31, Oracle recorded $US48 million in costs associated with a fiscal year 2009 restructuring plan, and expects to "incur the majority of the approximately $US300 million that is remaining during fiscal 2010," the filing states.

Restructuring expenses include employee severance, and possibly "charges for duplicate facilities and other contract termination costs," Oracle said.

The company listed only $117 million in restructuring for its fiscal year 2009, and $41 million the year prior, according to its 2009 annual report.

While the Sept. 21 filing offered no specifics on the restructuring actions Oracle will take, the company is widely expected to make heavy staff cuts if it completes a pending deal to purchase financially ailing Sun Microsystems. The $7.4 billion deal is in limbo as European authorities conduct an antitrust review.

The company posted first-quarter earnings last week that saw revenue drop but profits rise. Oracle managed this by "substantially improving" its operating margins, company President Safra Catz said.

Oracle has shed a small number of jobs this year. Last week's earnings announcement listed a total headcount of 84,639, down from 85,562 in the fourth quarter of fiscal 2009, and 86,588 in the third quarter.

An Oracle spokeswoman declined comment.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags SECOracle

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

Chris Kanaracus

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

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.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?