Oracle announces layoffs as earnings fall

Oracle posted strong year-end financial results yesterday, at the same time cutting 325 jobs in what it said was a move to a more efficient electronic commerce method of operating.

"This is part of our plan to evolve into an e-business company," said Jennifer Glass, a company spokeswoman. "We want to achieve business efficiency that will reduce the need for a variety of jobs."

The move came as the company reported that year-end net income increased 35 percent to $US1.3 billion, or 87 cents per share, compared to net income of $955 million, or 64 cents per share, for fiscal year 1998, excluding one-time charges.

Oracle reported that revenue for the year ending May 31 grew 24 percent to $8.8 billion, compared to $7.1 billion in revenue last year.

For the fourth quarter, Oracle showed a 31 percent increase in net income to $527 million, or 36 cents per share, compared with net income of $403 million, or 27 cents per share, in the same period last year.

The quarterly earnings beat Wall Street expectations. A median estimate of 30 analysts polled by First Call predicted Oracle would report fourth-quarter earnings of 32 cents per share.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about EvolveFirst CallOracleWall Street

Show Comments