A bummer for Oracle employees in Europe yesterday afternoon: the Irish Times reports that Oracle has announced at the Dublin office that 1300 people are going to be fired. Most of the layoffs will happen in Dublin, but Amsterdam and Malaga are not left out.
The people who will be fired are mainly in a sales, business development or solutions engineering role. The layoffs are necessary because Oracle did not meet its last quarterly targets. The revenue that has to come from the Oracle Cloud cannot cover the loss in license revenues.
Ultimately, a company like Oracle can not avoid firing people, and it is certainly not excluded that there will be more layoffs. Oracle is in a transition phase, with many on premise solutions are slowly being replaced to cloud-based services. Oracle is building a combined cloud ecosystem with both cloud infrastructure (IaaS), the Autonomous Data Warehouse (PaaS) and business applications such as ERP and CRM (SaaS). Not only the services change, but also the payment model, the license model is replaced by a subscription or pay-as-go model.
For Oracle employees this means a big change, anyone who can not participate in this new cloud world will sooner or later have to leave Oracle, because the old functions will expire. According to the Irish Times, Oracle has encouraged staff to apply for new open positions. For example, around the cloud services.