Oracle has hit back at claims by a Wall Street investment firm that the software giant is planning to axe 600 jobs on top of the 200 already gone from its applications division.
Citing sources, analysts at Credit Suisse First Boston said it had been told Oracle would axe between one and two per cent of its total headcount. That could mean as many as 800 jobs. The company axed 200 jobs last week.
According to CSFB, axing 800 jobs would save Oracle to $95 million. "These cuts do not surprise us given (Oracle's) limited traction in CRM and the need to resize the heavy investment to the opportunity," the analysts said.
Oracle denies that any further headcount reduction is planned, although analysts from Lehman Brothers and CIBC World Markets have also predicted job cuts.
Meanwhile shares of Oracle Japan – a joint venture with Nippon Steel – slumped after the company slashed its net profit forecast by 13 per cent for the latest business year.
It also lowered its sales forecast to 86.2 billion yen from 94.3 billion yen citing slower-than-expected computer software sales due to tight corporate spending on information technology.