Shillong, June 16: Amid concerns of an impending recession, tech companies worldwide are facing significant challenges, leading to cost-cutting measures and job reductions.
The latest victim appears to be global tech firm Oracle, which is reportedly undergoing another round of layoffs, specifically impacting its health unit. Insider initially reported the news, stating that the software giant is not only laying off employees but also retracting job offers and reducing open positions. These layoffs in the health division follow Oracle’s highly publicized acquisition of electronic medical records firm Cerner for a whopping $28.3 billion in December 2021.
Oracle’s Cerner division had secured contracts with the US Department of Veterans Affairs Office to maintain and enhance the electronic systems used for storing and managing patients’ health information. However, the partnership was halted by the US department after several patients experienced issues caused by glitches in Cerner’s software.
The layoffs within the health division may be related to the challenges encountered during Cerner’s partnership with the US Department for Veterans. The report indicates that Oracle will provide severance pay equivalent to four weeks’ salary, with an additional week for each year of service, along with payouts for accrued vacation days.