- Database giant Oracle has started laying off some US-based employees, sources tell Insider.
- It may cut thousands of jobs globally, according to news reports.
- Workers in Canada, India, and Europe may be next.
Database giant Oracle began laying off more of its US-based workforce on Monday, employees have confirmed to Insider.
The company may cut thousands of workers globally — including in the US, Canada, India, and Europe — to reduce costs by $1 billion, The Information reported last month.
Oracle currently employs about 130,000 employees.
Layoffs had already begun in Oracle's advertising unit, which cut about 60 people last month, Insider reported. Meanwhile, top executives like CMO Ariel Kelman and marketing leader Juergen Lindner are expected to depart the firm.
Other units reportedly taking cuts include Oracle CX/Marketing Cloud. The marketing organization that currently reports up to Kelman may also experience cuts, another source tells Insider.
Layoffs are not unheard off at the tech giant, although a $1 billion target would still be substantial. In its fiscal 2022 which ended in May, the company spent $191 million on restructuring costs, primarily related to employee severance, it reported in June. In 2021, it spent $431 million on such costs, it said.
The cuts come amid big changes for the Austin-based company: Oracle last month won regulatory approval for its $28 billion purchase of the medical-records company Cerner, and is currently absorbing its 20,000-some employees.
Oracle also recently won a contract to store the US user data for the ByteDance-owned video app TikTok — a deal that could boost its cloud ambitions as it seeks to overtake cloud giants like Amazon Web Services.
The database company reported better-than-expected earnings in June, with a 5% revenue increase from the year prior, and cloud revenues of $2.9 billion. Oracle Cloud Infrastructure, its cloud platform, still lags behind AWS, Microsoft, and Google Cloud in overall market share.
Oracle could not be immediately reached for comment.
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