San Francisco: Oracle, the software maker that bought Sun Microsystems in January, will incur as much as $825 million (Dh3 billion) in additional costs related to the deal, including expenses for job cuts and streamlining operations overseas.
The company expects to spend an additional $675 million to $825 million, mostly in cash, as it trims the combined workforce in Asia and Europe, Redwood City, California-based Oracle said yesterday in a regulatory filing.
It previously estimated restructuring expenses of $325 million.
Oracle, the world's second-biggest software maker, has repeatedly said it plans to squeeze $1.5 billion in operating profit from Sun in the first year after the merger. Its fiscal year began last week. The company estimates it will pay $550 million to $650 million in severance costs. The rest will cover facilities expenses and terminating contracts, it said.
The company said it began notifying employees about the job cuts on May 28. It didn't say how many positions are being eliminated. Oracle fell 71 cents, or 3.1 per cent, to $22.13 in Nasdaq Stock Market trading on Friday. The stock has declined 9.8 per cent this year.
Oracle is slated to report fourth-quarter results on June 24.
- $325m in restructuring expenses estimated previously
- $1.5b operating profit targeted from Sun in the first year
