Oracle has announced that it will lay off 3,000 employees from its Cerner division, following the $28 billion acquisition of the health IT company last year.
The layoffs, which will affect employees across all levels and functions, are part of a broader restructuring effort at Oracle Health. The company has also halted raises and promotions for Cerner employees, and has sold Cerner’s buildings in Kansas City.
The layoffs have been met with anger and frustration from Cerner employees. A former Cerner executive told Insider that morale within the workforce is “terrible.”
“People are scared and angry,” the executive said. “They don’t know what the future holds.”
The layoffs are a sign of the challenges Oracle faces in integrating Cerner into its business. The two companies have very different cultures, and Oracle has struggled to retain Cerner employees.
Oracle’s CEO, Safra Catz, has said that the company is committed to making Oracle Health a success. However, the layoffs suggest that the company is facing significant challenges in achieving its goals.
The layoffs are also a setback for Oracle’s ambitions in the healthcare market. The company has been investing heavily in healthcare in recent years, and the Cerner acquisition was a major coup. However, the layoffs suggest that Oracle is struggling to make its mark in the healthcare industry.
The layoffs are a reminder that even the biggest and most successful companies are not immune to the challenges of integration. Oracle’s experience with Cerner is a cautionary tale for other companies that are considering mergers and acquisitions.