Oracle’s chief financial officer Jeff Henley has said that most of the 500 staff cuts planned at the software supplier this quarter will come from Europe and Asia.
While it cut 500 jobs last quarter, these were concentrated mainly in the US. The firm employs more than 40,000 staff in total.
The European cull is taking place because the downturn in the region’s high tech sector has intensified, which means it is now being hit in a similar way to the US market over the past year.
But Henley does not believe that the impact of the economy, which he describes as the worst since the Depression in the 1930s, will be as high on Oracle’s European business as in its domestic market.
This is because European companies did not overspend on technology to the same extent as their US counterparts during the dot com boom of the late 1990s and so are less disillusioned.
But Henley also does not expect to see customers undertaking high tech spending binges in the run up to Christmas as they attempt to use up their budgets before the end of the year. It was not the case last year, so he believes it unlikely to be the case this year.
However, he expects to see a modest turnaround in the US market, which is now close to rock bottom, in 2003, with Europe and Asia following a couple of quarters behind.
He reiterated Oracle’s forecast of a fall in revenues of between four and seven per cent worldwide for its current quarter ending in November.