Oracle to ramp up cost-cutting, according to SEC filing
- 23 September, 2009 00:41
Oracle is planning to escalate cost-cutting activities during the remainder of its fiscal year 2010, which began in June, according to a filing the company made Monday with the U.S. Securities and Exchange Commission.
During its first quarter, which ended Aug. 31, Oracle recorded $US48 million in costs associated with a fiscal year 2009 restructuring plan, and expects to "incur the majority of the approximately $US300 million that is remaining during fiscal 2010," the filing states.
Restructuring expenses include employee severance, and possibly "charges for duplicate facilities and other contract termination costs," Oracle said.
The company listed only $117 million in restructuring for its fiscal year 2009, and $41 million the year prior, according to its 2009 annual report.
While the Sept. 21 filing offered no specifics on the restructuring actions Oracle will take, the company is widely expected to make heavy staff cuts if it completes a pending deal to purchase financially ailing Sun Microsystems. The $7.4 billion deal is in limbo as European authorities conduct an antitrust review.
The company posted first-quarter earnings last week that saw revenue drop but profits rise. Oracle managed this by "substantially improving" its operating margins, company President Safra Catz said.
Oracle has shed a small number of jobs this year. Last week's earnings announcement listed a total headcount of 84,639, down from 85,562 in the fourth quarter of fiscal 2009, and 86,588 in the third quarter.
An Oracle spokeswoman declined comment.