Proactive Investors - Oracle Corporation (NYSE:ORCL) has cut hundreds of jobs at its health unit, which may be related to issues with a contract with the US Department of Veteran Affairs (VA), the Insider reported, citing three people familiar with the matter.
The software giant is also rescinding job offers and cutting back some open positions, the report said.
Last year Oracle closed the $28.3 billion acquisition of electronic medical records firm Cerner (NASDAQ:CERN) to expand into healthcare. However, in April 2023 it was reported that a $10 billion Oracle Cerner project at the VA was halted following repeated software glitches with the rollout of electronic health records. The project was aimed at replacing homemade medical records with Cerner's technology.
Oracle reported full-year 2023 results on June 12 which showed an 18% rise in revenue to $50 billion, with Cerner contributing $5.9 billion to total revenues.
The laid-off employees will receive severance pay equal to four weeks, plus one additional week for every year of service and a payout of vacation days, the Insider report added.