Oracle recently considered cost reductions of up to $1 billion that could result in thousands of layoffs as soon as August, said a person with direct knowledge of the situation. The proposed job cuts could disproportionately impact U.S.- and Europe-based workers in units such as marketing for software applications that automate customer service and ecommerce functions, this person said.
The cuts have been discussed while Oracle makes investments to serve one of its newest cloud customers: TikTok, the viral video app owned by China-based ByteDance. It’s a key contract for Oracle, a pioneer in database software that is trying to compete with Amazon Web Services in selling cloud computing services. But the timing of Oracle’s investments for a Chinese customer while it considers cutting American jobs has irked some managers, said the person with knowledge of the discussions and another person who was briefed about it.