The Oracle CEO on Wednesday said the company is not planning additional layoffs, despite a Wall Street analyst report predicting reductions.
REDWOOD SHORES, Calif. - Oracle Corp. Chairman and CEO Larry Ellison on Wednesday said the company is not planning additional layoffs, despite a Wall Street analyst report predicting reductions.
The announcement was made at a conference here to formally announce a partnership with Red Hat Inc. and Dell Computer Corp. in which Oracle 9i database Real Application Cluster technology would run on Red Hat Linux Advanced Server on Dell PowerEdge servers. During the presentation Ellison responded to analysts who have speculated that the software maker is struggling to meet expectations for its fiscal fourth quarter which ended last week.
When asked if any layoffs were planned beyond the 200 developers let go last Friday, Ellison said flatly, "No." He then scoffed at the characterization of the consolidation of staff in its applications development group as a layoff, saying, "200 out of 40-some thousand are not layoffs."
On Monday, Lehman Brothers Analyst Neil Herman in a research note wrote that several sources were saying that Oracle "is likely to undertake significant employee reductions within the next several weeks." The note didnt specify numbers because of a lack of corroboration from sources on the numbers.
Stock market analysts also have been predicting that Oracle wouldnt meet earnings expectations of 12 cents a share for its fourth quarter. Ellison countered that the company has met expectations.
"Were in our quiet period but I can say this. Had we not done at least 12 cents earnings in operating income, we would have had to pre-announce, we would have had to warn, and we didnt warn," Ellison said.
Ellison lashed out at stock market analysts for their speculation of bad earnings, comparing their pessimism in todays slow economy to their exuberant recommendations during the boom.
"Theyre now being wildly irresponsible on the way down," Ellison said.
As an online reporter for eWEEK.com, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for eWEEK.com. Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.