Oracle expected to axe jobs -- perhaps 10,000 -- after Sun deal
Apr 21, 2009, 19:02 (0 Talkback[s])
(Other stories by Robert McMillan)
"Oracle expects that Sun's operations will contribute $1.5
billion in operating profits during the software vendor's next
fiscal year and $2 billion the following year. That would make the
Sun deal "more profitable in per-share contribution in the first
year than we had planned for the acquisitions of BEA, PeopleSoft
and Siebel combined," Oracle President Safra Catz said as part of
the buyout announcement, referring to the three other large
acquisitions made by Oracle in recent years.
"Much of the added profits will come via layoffs, according to
Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co. who
follows the technology industry. Prior to today's announcement, he
had been forecasting $800 million in operating profits during Sun's
2010 fiscal year, which is scheduled to start in July."