Oracle says that job cuts resulting from the acquisition of PeopleSoft will be announced this Friday. Although both Oracle and PeopleSoft employees are "eligible" the cuts are expected to hit PeopleSoft folks the hardest.
An article in the local East Bay Business Times
seems to have the best information. It quotes Jeff Embersits, an analyst with Shareholder Value Management in San Francisco, as expecting 6,000 to be terminated, or 11% of the combined firm's 53,805 employees, in the first round.
On the other hand, it has another source saying that only 2,500 will be cut, mostly from HR and administrative functions.
On the third hand, Richard Davis at Needham & Co. expects Oracle to cut up to 90% of PeopleSoft employees in administration, as well as 80% of PeopleSoft's salespeople, while keeping most of its research and development team. In light of Oracle's interest in maintaining PeopleSoft customer satisfaction, I think that would be a mistake.
SAP and Sybase are both reporting an increase in resumes arriving from PeopleSoft staffers.
Then there is the expected hit on employee morale:
One source said that the resulting morale is so poor that many employees were coming in late and leaving as early as 2 p.m. But another source inside the company said that the slackness was due more to the normal breather employees take at the end of the quarter.
Check out the East Bay Business Times
for the whole story.
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