Oracle's Health Unit Faces Major Downsizing Post-Cerner Acquisition Amid Industry Trends

On Thursday, Oracle Corp ORCL let go of hundreds of employees, retracted job offers, and cut back open positions within its health unit.

The health unit includes electronic medical records firm Cerner which it acquired for $28.3 billion in December 2022.

Cerner's challenged work with the U.S. Department of Veterans Affairs, which hired Cerner to replace its homemade medical records with Cerner's technology, led to the downsizing, Reuters cites a media report.

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.

This week, Oracle said fourth-quarter revenue increased 17% year-over-year to $13.8 billion, which beat average analyst estimates of $13.73 billion. The company reported quarterly adjusted earnings of $1.67 per share, which beat consensus estimates of $1.58.

U.S. Big Tech companies ranging from Amazon.Com Inc AMZN to Meta Platforms Inc META have downsized by thousands citing macro headwinds and a slowdown in business as the economy recovered from the pandemic.

Price Action: ORCL shares traded higher by 0.69% at $127.42 premarket on the last check Friday.

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