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Phil Muncaster
June 6, 2010
Enterprise software giant Oracle has announced further job cuts primarily in Europe and Asia as part of its restructuring after the acquisition of Sun Microsystems.
In a filing with the US Securities and Exchange Committee (SEC), Oracle revealed an amendment to its ‘Sun Restructuring Plan’.
“The amendment further reduces the size of Oracle’s combined workforce primarily in Europe and Asia, eliminates redundant costs resulting from the acquisition of Sun and reflects improved efficiencies in operations,” the filing continued.
“Oracle estimates the additional costs related to this amendment to the Sun Plan will be between $675 million and $825 million, the substantial majority of which will require the outlay of cash.”
Oracle said it expects that the majority of this money - $550 to $650 – will be “restructuring charges” related mainly to employee severance costs, while $85 million to $115 million will relate to facilities costs and $40 million to $60 million will relate to contract termination costs.
In October of last year, Sun Microsystems revealed in a regulatory filing that delays in its proposed merger with Oracle will force it to cut 3,000 jobs in the next 12 months.
At the time, the firm said it will make the cuts in all geographical areas, and that it expects the layoffs to cost between $75m and $125m (£45m and £75m).
http://www.v3.co.uk/v3/news/2264230/job-cuts-way-oracle
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