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Oracle laid off hundreds of employees

The American company Oracle laid off hundreds of employees last week, the Wall Street Journal reports, citing its sources. The layoffs primarily affected advertising and customer service staff. The company has focused on cloud-based healthcare services.

In December last year, Oracle received regulatory approval for a $28.3 billion acquisition of Cerner Corp, a provider of healthcare services, devices and equipment. Last week, Information reported about the intention to lay off thousands of Oracle employees.

Oracle said the layoffs are due to a restructuring and reorganization in fiscal 2023. Reductions also affected Cerner, according to a WSJ source, this is due to the integration of business into Oracle. This retooling is aimed at deepening the field of healthcare, explains Ray Wang, an analyst at Constellation Research Inc.

Oracle's total revenue for the fourth quarter of the previous fiscal year beat expectations, according to a report the company released in June. Total revenue is up 5% annually to $11.84 billion, and cloud services sales are up 19% year-over-year to $2.9 billion. Total operating expenses are up 25%. According to Oracle CEO Safra Katz, the increase in revenue is driven by demand for cloud services. Sales increased by 36%.

Oracle does not suspend the recruitment of new employees, but more selectively determines the sources of staff replenishment. The company currently has about 500 open vacancies for the cloud infrastructure group. Oracle is looking to close the gap with Microsoft and Amazon.

Last year, Oracle spent $431 million on restructuring, and this year - $191 million. From the annual report, it becomes known that in June the company employed 143,000 employees.

In July, Microsoft announced its intention to lay off less than 1% of its staff. At the moment, the corporation employs approximately 181 thousand people. In early August, Robinhood Markets Inc. announced plans to cut 23% of employees, and in June, Netflix said that the company would lay off 300 workers. A month earlier, the leadership of the video hosting had already laid off 150 people.

Oracle laid off hundreds of employees