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Oracle's Workforce Reductions, Hundreds of Employees Sacked, and Job Offers Cancelled

Oracle's Layoffs in Health Division Raise Concerns Amidst Acquisition Scrutiny

16 June 2023

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Kunal Tyagi

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  • Oracle is conducting layoffs in its health unit, including the Cerner division, as part of cost-cutting measures during an impending global recession.

  • The layoffs are likely a response to challenges faced in Cerner's partnership with the US Department of Veterans Affairs, which experienced software glitches impacting patients.

  • The exact scale of the layoffs and their impact on Oracle's offices in the US, Europe, and India remains uncertain, prompting support from former employees and the health-tech community.

Tech giant Oracle is grappling with the impact of an impending global recession, leading to cost-cutting measures and workforce reductions. The company recently made headlines for its decision to lay off employees in its health unit, including the Cerner division. The layoffs are believed to be connected to Cerner's troubled partnership with the US Department of Veterans Affairs, which experienced software glitches affecting patients. Oracle's acquisition of Cerner for $28.3 billion in December 2021 now faces scrutiny as the company reevaluates its workforce and operational strategies.


Challenges in the Health Division:


Oracle's Cerner division was entrusted with maintaining and improving electronic systems used to manage patient health information for the US Department of Veterans Affairs. However, due to software glitches, the partnership was suspended, impacting patients. The recent layoffs in Oracle's health division are potentially a response to these challenges. Reports suggest that affected employees will receive a severance package based on their length of service, including additional compensation and vacation pay.


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Global Impact:


While specific details regarding the scale of the layoffs remain uncertain, it is expected that job cuts will affect Oracle's offices in the US and Europe. The impact on the workforce in India, where Oracle maintains a substantial presence, remains unclear. The uncertain job security has led to a sense of empathy among former employees and members of the health-tech community, who have taken to platforms like LinkedIn to express their support for those affected.


Support and Reflections:


Former Cerner employees, as well as individuals from the health-tech community, have shown solidarity with their impacted colleagues. One such post on LinkedIn from Kathy Schoening, a former VP of professional services at Cerner, expressed sadness for the affected workers and offered assistance. Another LinkedIn user, Vivian Ramos, who was laid off after working at the company for eight months, shared her heartbreak and wished luck to everyone affected. The outpouring of support highlights the impact of these layoffs on individuals and their careers.


Broader Context:


This is not the first time Oracle has implemented workforce reductions. Earlier this year, the company laid off over 3,000 employees and took additional measures to cut expenses. The effects were felt globally, including in Oracle's India division. The recent layoffs in the health unit are part of Oracle's ongoing efforts to streamline operations and adapt to changing market conditions.


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