Oracle is reportedly set to lay off thousands of employees in a bid to cut operating expenses by as much as US$1 billion.
Employees in Europe and the United States are more likely to be affected, reported The Information citing unnamed sources.
Those employees selling software applications that automate customer services and e-commerce functions are most likely to be fired.
The news comes barely a month after Oracle posted a 28% drop in operating income for the fiscal quarter ending May 31, 2022.
Two senior executives of the company (Ariel Kelman and Juergen Lindner) are also about to leave, according to CRN.
Lindner looks after the unit that sells software-as-a-service, while Kelman is leading an Oracle team working with Tiktok, the Chinese viral video application.
Oracle turned to be a beneficiary when former US President Donald Trump tried to ban Tiktok. The Chinese social media chose Oracle instead of Huawei to migrate its data to the cloud.
TikTok’s revenue has grown at a rapid pace in recent months. According to reports, Oracle is investing money to support the operation of Tiktok. Some of the company’s employees are accusing it of killing American jobs on its way to assist the Chinese firm.