Oracle to lay off more Sun workers

The company will take a charge of up to $650 million this year to cover an undisclosed number of layoffs

Oracle is making further job cuts related to its acquisition of Sun Microsystems, primarily in Europe and Asia, the company said in a regulatory filing Friday.

Oracle said it will book up to US$825 million in additional charges for the acquisition this calendar year, including $550 million to $650 million primarily for severance payments.

It didn't say how many jobs it plans to cut, and an Oracle spokeswoman said the company had no comment beyond what is in the filing. Oracle said it began notifying affected employees on May 28. The cuts will eliminate redundancies and improve efficiencies, Oracle said.

Sun had already been cutting jobs before Oracle acquired the company earlier this year, and some analysts have predicted further deep cuts by Oracle. At least one analyst predicted that Oracle would lay off half of Sun's workforce to get the company back to profit.

Oracle CEO Larry Ellison dismissed that claim angrily in January, calling the reports "highly irresponsible."

"The Sun people went through enough angst without having to read this garbage that you're writing," he told reporters and analysts in January. "The truth is, we're actually hiring 2,000 people over the next few months to beef up these businesses, and that's about twice as many people as we'll be laying off.

"We're not cutting Sun to profitability, we're growing Sun to profitability," Ellison said at the time.

The remainder of the additional charges announced Friday include up to $115 million related to facilities costs and up to $60 million related to contract termination costs. They are in addition to the $325 million in charges Oracle had already announced.

Oracle announced its plan in April last year to acquire Sun for $7.4 billion. The deal was held up by regulators in Europe and did not close until January.

Sun announced plans to lay off 3,000 workers, or about 10 percent of its workforce, last October while it was waiting for the Oracle deal to close. A year before that, it announced layoffs of 5,000 to 6,000 workers.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags careersOraclelayoffsOracle-Sun merger

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

James Niccolai

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?