Oracle would fire nearly 6,000 employees if it acquires PeopleSoft, according to Oracle business documents exhibited at the company's antitrust trial on Friday.
The job cuts would save Oracle about $1.17 billion annually by eliminating redundant positions, according to the acquisitions efficiencies analysis document, which Oracle prepared last July. Oracle's analysis assumed that PeopleSoft would complete its acquisition of rival J.D. Edwards, a deal announced a few days before Oracle launched its hostile bid for PeopleSoft and closed last fall.
Oracle President Safra Catz, testifying in U.S. District Court, called the layoff analysis a "worst case scenario," based on the assumption that the combined company would lose some revenue from PeopleSoft customer defections during the proposed $7.7 billion merger.
Oracle would largely eliminate PeopleSoft's marketing and sales staff, according to the model. It would also make heavy cuts to the company's software development and administrative groups. The cuts would also target former J.D. Edwards staff in each of those areas.
PeopleSoft fired about 1,000 employees after its smaller $1.8 billion acquisition of J.D Edwards last year. The eliminated positions represented about 7 percent of the companies' combined workforce.
News source: News.com