Oracle is eyeing up a $1 billion cost reduction program as a step to revamp the organization. Moreover, the cost reduction strategy will make multiple jobs redundant. The layoff plans will affect thousands of employees across United States and Europe in a disproportionate manner. In addition, the tech giant may fire employees who are selling software applications that automate customer services and e-commerce.
Decrease in Oracle’s revenues
The news of cost reduction and layoffs came only a month after Oracle posted a 28% decrease in their operating income during the last fiscal quarter. Moreover, according to reports two senior executives are also leaving the company. This includes the departure of Juergen Lindner, senior vice president of marketing for SaaS. His unit is on the list for potential reorganization and job cuts. Moreover, CMO Ariel Kelman may also leave Oracle. He joined Oracle in 2020 from AWS and was leading a team which was working this TikTok.
Oracle’s interest in electronic health records
However, Oracle has spent huge money on acquisitions. In June, the company took over electronic health records specialist Cerner at a cost of $28.3 billion. Moreover, Cerner had about 28,000 employees working for them. In addition, Larry Ellison, Oracle founder and CTO have boasted of huge plans for health tech in United States. He has announced a strategy to build a centralized database of medical records in United States. Hence, the centralized structure will assist in mitigating the issue of transferring important medical histories between healthcare centers when people travel.
Workers feel dissatisfied
“Together, Cerner and Oracle have all the technology required to build a revolutionary new health management information system in the cloud. That system will deliver much better information to healthcare professionals. Better information will fundamentally transform healthcare.” Ellison said in his statement. Moreover, Ellison is also hoping to replace HR systems in US hospitals to make staffing more efficient. However, some of the company’s employees are accusing Oracle of killing American jobs. Moreover, they claim that Oracle is on its way to assist the Chinese firm.
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