Employees have confirmed that the database company Oracle (NYSE:ORCL) began cutting off other U.S. staff on Monday. The Information reported last month that the corporation may lay off thousands of employees worldwide, including in the United States, India, Canada and Europe, to decrease costs by $1 billion. Oracle (NYSE:ORCL) employs roughly 130,000 employees.
Insider reported that layoffs had already begun in Oracle’s advertising division, which eliminated approximately 60 employees last month. Ariel Kelman, the company’s chief marketing officer, and Juergen Lindner, a marketing leader, are set to leave the company. Oracle (NYSE:ORCL) CX Marketing appears to be one of the other areas undergoing layoffs, according to SFGate, which cited LinkedIn and TheLayoff.com postings. Another source informed Insider that layoffs might also affect the Kelman-reporting marketing department.
Although a $1 billion goal would be significant, layoffs are not unheard of at the tech behemoth. According to a report that was released in June, the company spent $191 million on restructuring costs in its fiscal 2022, which ended in May. These costs were primarily connected to employee severance. According to what it indicated, it spent $431 million on these expenses in 2017. The Austin, Texas, corporation has undergone significant changes and cuts. The $28 billion acquisition of the medical records business Cerner by Oracle (NYSE:ORCL), which will employ about 20,000 people, received regulatory approval last month.
Oracle (NYSE:ORCL) also just obtained a contract to store the U.S. user data for the ByteDance-owned video app TikTok, a move that might enhance its cloud ambitions as it strives to surpass Amazon Web Services. In June, the database business posted earnings that exceeded expectations, with a 5 % growth in revenue from the previous year and $2.9 billion in cloud revenues. Oracle (NYSE:ORCL) Cloud Infrastructure trails behind AWS (SGX:AWS), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOGL) Cloud in terms of overall market share.
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