More than half of the employees at software firm Siebel may lose their jobs following the company’s acquisition by Oracle, analysts have predicted.
Oracle will need to make significant post-merger savings to meet its aim of making Siebel profitable within the next 12 months. That could require cutting 60% of jobs, according to a research note from investment bank UBS.
Immediate casualties are likely to come in HR and other administrative and financial functions, where there is significant overlap with Oracle’s existing workforce.
Siebel had already made significant cuts prior to the acquisition – slashing its payroll from 9,000 employees to just 4,700.
Analysts also speculated that it would not only be Siebel employees that feel the pinch. Oracle’s own customer relationship division may suffer redundancies, as well as employees from Oracle’s previous acquisitions, PeopleSoft and JD Edwards.