Oracle has announced it is cutting about 5,000 jobs following the completion of its $10.3bn takeover of rival Peoplesoft last week.
The company said it would retain more than 90 per cent of Peoplesoft product development and product support staff.
Oracle's 18-month fight to acquire Peoplesoft was one of the most drawn-out and hard-fought US takeover battles of recent times. The merged companies are set to be a major force in the enterprise software market.
In a statement, Oracle said it began notifying staff of redundancies on Friday and the process would continue over the next 10 days.
"By retaining the vast majority of Peoplesoft technical staff, Oracle will have the resources to deliver on the development and support commitments we have made to Peoplesoft customers over the last 18 months," said Oracle's chief executive, Larry Ellison, in a statement.
Some analysts suggest more cuts may be announced in the future. Some employees are quoted as saying they would rather be sacked than work for Oracle.
For more on Oracle's takeover of Peoplesoft, see tomorrow's Personnel Today magazine.