Oracle Corp. (ORCL) is planning to cut up to 1,000 jobs in Europe, according to a French labor union.

The apparent move by Oracle, the world's second-largest software maker, comes shortly after the company said it detected signs of improvement in its North American business for its fiscal fourth quarter, but indicated that the business environment in Europe remains challenging. Oracle, which makes databases and other business tools, recently announced that it intends to buy Sun Microsystems Inc. (JAVA), for $7.4 billion.

A post on the Web site of the CFDT union says it has been informed by the company of plans to cut between 850 and 1,000 in Europe, from a total of 17,000 staff. Approximately 250 positions will be lost in France, the union claims, just over 15% of its French work force.

Oracle has around 86,000 employees in total, according to the company's Web site.

The union said Oracle had forecast growth to be slower than expected in Europe, and that the cuts were designed to maintain the operating margin and preserve the long-term strategy of the company. The CFDT said it had expressed "surprise and anger" to Oracle.

An Oracle spokeswoman didn't return calls seeking comment, and it remains unclear if Oracle plans to make any cuts in other regions.

Oracle in June reported that profit in its fiscal fourth quarter, ending May 31, declined 7.2%, posting its first revenue drop in seven years as the stronger dollar and continuing economic weakness weighed on revenue and earnings.

Despite declining sales and a tough technology spending environment, Oracle has so far avoided large-scale job cuts, unlike peers such as Microsoft Corp. (MSFT), Adobe Systems Inc. (ADBE) and International Business Machines Corp. (IBM), all of which have announced plans to lay off thousands of workers.

-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; jessica.hodgson@dowjones.com