An Oracle spokesperson was not available at press time, but the company is hosting a news conference Feb. 9 to talk about its Siebel integration plans.
Oracle, based in Redwood Shores, Calif., is said to have plans to lay off between 1,000 and 2,000 employees as it works to integrate Siebel into the corporate fold.
"We expect Oracle to immediately execute a round of layoffs targeted at Siebels back-office and administrative employees," Robert Stimson, an analyst with San Francisco-based WR Hambrecht & Co., said in a research note.
"We believe Oracle will have to cut Siebels operating expenses by approximately 30 to 40 percent (or roughly $350 to $400 million) in order to meet previously stated accretion goals," Stimson said.
Stimson also said there are rumored to be further cuts coming among the ranks of former PeopleSoft and JD Edwards & Co. employees.
Oracle acquired PeopleSoft, and by default JD Edwards, last year. In the wake of that bitter takeover battle, Oracle laid off about 5,000 PeopleSoft and JD Edwards employees—cutting between 60 and 70 percent of PeopleSofts costs.
Prior to the merger with Oracle, Siebel had about 4,700 employees; Oracle currently has about 51,000 on its payroll.
Charles Di Bona, an analyst with New York-based Sanford Berstein, said in a research note that Siebel may see cuts in its sales and marketing teams as well.
Oracle has stated that it plans to use Siebels technology as the core of its next-generation Fusion CRM (customer relationship management) suite of applications.