500 Oracle employees in its North American sales and consulting divisions were laid off last Friday by Oracle corp. Oracle’s laid off is directly related to $8.5 billion takeover of BEA Systems Inc. and acquisitions of Hyperion Solutions Corp. last year. Also, the business volume went down due to recent economic slowdown. The company admitted that it plans to spend this year on severance, it will likely keep downsizing till spring of 2009. The company has 84,000 people globally.
Oracle expects to spend a total of $148 million on severance packages for laid-off employees of BEA. Most employees of BEA will receive between three months and 12 months of pay and COBRA health insurance if they were laid off within a year of an acquisition. The cut has hit a number of locations and division including its Bangalore, India operation where it laid off 40 employees. Oracle has put aside $47 million for severance for Hyperion employees. $7 million out of that amount was spent between April and November of last year.
Source: ComputerworldFiled under Business News, Enterprise Software | Tags: BEA, Downsize, Hyperion, Million, Oracle | Comment Below