(CTN News) – There was another round of layoffs on Thursday following Oracle Corp.’s acquisition of Cerner Corp. for $28.3 billion, according to LinkedIn and Reddit posts.
A number of roles related to federal and Department of Veterans Affairs contracts appear to be affected by the Oracle Cerner job cuts.
There has been a lot of activity on the federal side today. According to a Reddit user, “Pretty much my entire team was terminated.”.
Several affected employees have posted on LinkedIn that the cuts included positions such as senior federal learning specialists, senior consultant team leaders, directors and federal program managers, federal health care/IT consultants, organization change consultants-VA, federal project managers, and Department of Defense and VA consultants.
In time for publication, Oracle (NYSE: ORCL) representatives did not respond to requests for comment.
A number of individuals have also posted on Reddit that they have been rescinded from their job offers. It was anticipated that some would begin their new roles in July, while others would begin in September.
According to a Reddit user, I received a call today informing me that Oracle had rescinded my offer due to an inaccurate demand calculation. He told me that I could apply for other positions, but why would I do that when they waited six full months to inform me that their offer was fraudulent.
On the federal side, “lots” of people are being let go. “My manager has a full day of 15-minute meetings.”
As a result of numerous complaints from VA health system officials and critical reports from the VA’s Office of Inspector General, the VA paused implementation efforts and put under review its $16 billion contract with Oracle Cerner to modernize the VA’s electronic health records system. Complaints included concerns about patient safety, which contributed to veterans’ deaths.
An agreement reached by the VA and Oracle Cerner in May modified the original contract and significantly increased VA’s ability to hold Oracle Cerner accountable in several key areas.
Oracle has laid off over 3,000 Cerner employees since completing the Cerner acquisition in June 2022, Business Insider reported in May.
In an earnings call held on June 12, Oracle CEO Safra Catz suggested that more cuts may be in store for Oracle Cerner. The analyst asked for an update on the “synergy capture” and “cost takeout” now that Cerner is part of Oracle.
Is that where we are, or are we still at the beginning of the journey? ” the analyst said.
As Catz replied, “I feel like we’re still at the beginning. The operation needed to be stabilized. Definitely, we didn’t want to break anything. A lot more changes are coming, and we’re going to combine our legal entities shortly, which gives us more flexibility in the way we operate.
It’s just the beginning. As compared to the way we run our company, their margins are nowhere close to ours. At most, I would say we are at the beginning-ish of the middle.
As we bring our technical capabilities into the product and move them into the Oracle Cloud, we still have a lot of work to do on the operational side. This also results in a lot of savings.”