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Friday, January 09, 2009

Layoffs at Oracle, SAP, and Infor

Go to latest news on Oracle layoffs, November 2009.

Several sources are reporting to me regarding layoff activity among major enterprise software vendors in January, 2009.

Oracle layoffs: An anonymous source reports this morning, "I just got laid off from oracle today. Layoffs are happening company wide today and will be done by the end of the day."

This follows several days of the Spectator receiving a large number of Google referrals on keywords such as, "Oracle layoffs," "Oracle reduction-in-force," and "Oracle severance pay." The volume of such referrals increased further this morning, consistent with this latest source.
Update: My source now reports that the Oracle layoff is company wide and is in the order of 10-15%, depending on the group.

Update: Another source emails me, "A lot of Oracle layoffs today. Specifically NA Sales, Technology Business Unit, NA Consulting, NA Alliances & Channels, Retail Global Business Unit. Based on discussions with other Oracle employees, the number is around 8,000 globally. Some consolidation of operational groups. No warning at all. Just a call, and the FedEx truck showing up in front of the house an hour or so later."

Several sources reference the 10% number and 8,000 headcount, which would be consistent with Oracle's worldwide employment number of appoximately 84,000.

Update, Jan 13. Computerworld has a good roundup of the Oracle layoff news, including links to the Spectator. Some analysts are doubting the 8000 figure. Oracle could easily end all the speculation, but for some reason just doesn't like making layoff announcements.

Update, Jan. 13. The Wall Street Journal, citing unnamed "people familiar with the matter," puts the Oracle layoff count at 500, but only counts employees in North America sales and consulting units. Still, it would indicate that the 8,000 number is well overstated.

Update, Jan. 15. Brian Sommer has a thoughtful piece analyzing Oracle's cost-containment strategy. He tries to get to a more accurate count of layoffs, but can't get confirmation either.
SAP layoffs: A source reports that SAP is making some deep cuts in SAP's Strategic Growth Enterprise (SGE) unit (focused on the SMB space).
Update: a comment on this post indicates 300 sales-related positions were affected in North America.

Update: See latest post for SAP layoffs, Jan. 28.
Infor layoffs: A source reports that "Infor just laid off a staggering 85% of their senior managers and executives across UK and Europe." However, I checked with Infor's PR department in North America, which reports the following:
While I cannot confirm specific figures, any recent headcount reductions in Europe were part of the initiative you reported on earlier in December -- a worldwide reduction of approximately 5 percent of our workforce.

The EMEA region remains a very strategic part of Infor's overall business.
The enterprise software industry is not immune to the cutbacks we are seeing among businesses in general and IT vendors and service providers in particular.

If you have further information or insights into the situation, please leave a comment or email me.

by Frank Scavo, 1/09/2009 07:32:00 AM | permalink | e-mail this!

 Reader Comments:

Huge amount of Layoffs today. This is not rumor this is fact
Worked at SAP and ORCL in the recent past and still keep in touch. ORCL buddy in ATL got RIF'd and his email today said it was 10% of NA, though he couldn't confirm if it was sales-related roles only or companywide. SAP buddy called and said let go 300 sales-related roles in NA today as well.
I'm a club Ex-Oracle member too. Yep I can safely confirm that they had laid off 20% of the consulting staff.
The layoff is company wide and is 10-15% depending on the group. Lists were compiled over the holidays and all people that were to be laid off were notified this morning, with our last pay checks being next day aired to us today.

I was a former BEA employee so I got the BEA severance package from last year (which Oracle is legally required to honor until May 2009), which was 3 months severance, 3 months paid COBRA. The Oracle severance package is 2 months severance plus one week for each full year worked. December 30 was the first date that BEA employees that were acquired into Oracle could be laid off legally per the acquisition agreement. The original BEA employees that were laid off in May never received Oracle offers.
With all respect to you and your sources...you need to be on the record with this kind of stuff IMO. Otherwise it's pure speculation.
I'm ex-SAP. SAP laid off last Wed 30% of the North America ByDesign consultants.
Ahh - Dennis - with all respect to you...this is fact. Its strange that it hasn't been made public yet.
L was laid off from NA Sales group on Friday. Does anyone know if WARN notices were distributed? Seems like Oracle would be requried to do so if these numbers are as large as specualted.
I don't think the layoff number is anywhere near 8000. The number I am hearing internally is 500-600. Not good, but not 10% of the workforce either.
NA field sales and consulting were done on friday but there is another round coming for other business units in the next couple of weeks.

The total layoff coming in all these mini-rounds will be around 10%
Any layoffs in Server Tech?
Over 600 got laid off in North america sales (that represents 11% of sales total in North america), over 1500 got laid off in consulting, several hundred got laid off in training and several hundred got laid off in india. Development layoffs are later this month and there will be another round of sales layoffs when oracle misses its q3 numbers. (I mean sales targets, not stock analyst numbers). There is no pipeline really for q3 and q4 so more layoffs are coming. I have a friend who survived who has seen the spreadsheet with the names of the next 10% in it. Brutal.
I was laid off this Friday 9th from Oracle. I am an Account Executive, based in ATL. I was told several hunderds are let go in sales, and potentially more coming. They are watching numbers by the week. Any Oracle guys, please state your accurate data here and update us all. Thank for all who contributed here. I got a call Friday 8:00AM from my boss, that your position has been eliminated. That's it. 4 weeks of severance for year1, and one week after that. Not sure why above quoted different severance package. Please state your Severance package if you get laid off. Wish everyone the best 2009. Time to start a starup!!!
Packages have to do with whether you came from an acquisition or not. I got laid off and was a former bea employee and legally they have to honor the bea acquisition package until a year from the date of acquiring bea. My package was three months severance, three months cobra. Peoplesoft, siebel, and hyperion acquiries were getting one month severance for first year, plus one week for each additional year and one month cobra. Oracle employees that were not part of an acquisition are getting two weeks severance for first year, one week for each additional year and no cobra.
Interesting comment from one "Lizzie Tudor," on Silicon Investor site at http://siliconinvestor.advfn.com/readmsg.aspx?msgid=25322162:

She writes, "I was let go last Friday. I was in north america sales consulting team. I supported CRM On Demand. I was told my position was eliminated. I saw it coming. The region I supported have done lousy (closed 0 deal in Q1 and 1 deal in Q2). Our CRM On Demand product is weak compared to salesforce offering. We lost all CRM On Demand deals. I wasn’t engaged enough by reps since there is no CRM On Demand deals.

I have heard that Oracle is shifting product focus from CRM On Demand to MDM and BPM. Hence, overlap teams in CRMOD and BI were hit hard."
have any one tried contacting the named HR Manager for question. The 914 area code number given in my paperwork is disconnected!
Have you guys actually received your severance pay yet? I am still waiting for it myself.
Oracle layoffs hit channel operations hard
SAP all hands meeting scheduled for next week, could be anywhere from 1000-8000 RIF'd.
SAP may know tomorrow - rumors abound that tomorrow many BusinessObjects folk will know their fate.
SAP BOBJ laid off BOBJ field services in Dec (up to as much as 40% I heard, edu and consulting), then as part of the reorg hit the BOBJ sales team in early Jan. Some of SAP reps cut then as well. Heard by the end of January, BOBJ support, SEs will know their fate.
SAP layoff covered at http://blogs.zdnet.com/BTL/?p=11829
Many extra posts re severance packages.....Its probably all of the SUN employees anticipating huge layoffs once the sale is complete....
Oracle had another round of layoffs yesterday June 4th 2009. I was in NA sales and on my floor of about 80 ppl they let go 10 of us. It was pretty random who got let go and who was "saved"
Oracle Laid of Huge number off Employees in India in HR division including APAC head of Campus realtion..i was shocked to hear this news..i am conserned abt my job now...
Major layoffs in Oracle Consulting Division last week, rumors that the OCS division may be rid of because of low revenue.

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