Oracle’s Potential Cost-Cutting Efforts: 5 Things To Know
The tech giant could be cutting thousands of jobs and it has confirmed that two of its higher-ups are departing the company. Here’s what you should know.
Cuts On The Horizon?
News broke on Friday that tech giant Oracle recently considered cost-cutting measures to the tune of $1 billion. The measures, according to a report from The Information, could result in thousands of job cuts by August.
The cuts come of the heels of Oracle’s massive $28.4 billion acquisition of healthcare IT giant Cerner, which closed on June 8. The potential cost cuts also come at a time where Oracle is trying to up its game and go head-to-head with the stiff cloud competition, namely, Amazon Web Services and Google Cloud. Oracle has some big-name cloud customers, including AT&T, TikTok, and Zoom, and the company is actively pursuing government contracts, too. To that end, the company has touted its infrastructure investments in recent years and is trying to undercut its competition on price. Oracle CEO Safra Catz said in June that the company’s revenue growth in the cloud unit was poised to “accelerate substantially” in the coming year.
That’s why the timing of the potential cuts is interesting. Still, it’s important to note that the Austin, Texas-based company hasn’t confirmed the details in the report or commented on any potential job cuts this summer. At the same time, however, the report also said that two senior Oracle executives are leaving the company: CMO Ariel Kelman and Juergen Lindner, senior vice president of marketing for SaaS — moves that a source confirmed to CRN.
Here‘s the details of the report, including the potential job cuts and cost-cutting measures, and what to know so far about Oracle’s plans to compete in the crowded cloud space.