UPDATE: Oracle To Cut Up To 1,000 European Jobs, Union Says
July 02 2009 - 6:04PM
Dow Jones News
Oracle Corp. (ORCL) is planning to cut up to 1,000 jobs in
Europe, according to a French labor union.
An Oracle spokeswoman declined to comment, and it remains
unclear whether Oracle plans to make any cuts in other regions.
A post on the CFDT union's Web site said Oracle, the world's
second-largest software maker, 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, one of the largest unions in France, said it had
expressed "surprise and anger" to Oracle over the planned cuts.
According to the union, Oracle, based in Redwood City, Calif.,
plans to cut between 850 and 1,000 jobs from a total of 17,000
staff in Europe. Approximately 250 positions will be lost in
France, the union said, which is just over 15% of its French
workforce. Oracle has around 86,000 employees in total, according
to the company's Web site.
The apparent move by Oracle comes shortly after the company
indicated that the business outlook in North America had improved
in the fourth quarter. At its earnings call, Oracle wasn't as clear
on the outlook for Europe.
Oracle in June reported that its fiscal fourth-quarter profit
ending May 31 declined 7.2%, marking its first revenue decline in
seven years, as the stronger dollar and continuing economic
weakness weighed on revenues and earnings.
Despite declining sales and a tough technology-spending
environment, Oracle has 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.
Oracle, which makes databases and other business tools, recently
announced it intends to buy Sun Microsystems Inc. (JAVA) for $7.4
billion.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455;
jessica.hodgson@dowjones.com
(Ben Worthen contributed to this article.)