REDWOOD CITY, Calif. -- Computer software maker Oracle Corp., responding to its first-ever quarterly loss, laid off 400 people -- about 10 percent of its domestic workforce -- in a major reorganization Monday.
The company, which sells relational database software, said the cuts were madeto bring costs in line with lower growth expectations.
Oracle also announced the resignation of its chief financial officer.
Oracle, once a darling of Wall Street, has been hurt, in part, by overly optimistic revenue projections and an industry-wide slowdown in software sales for minicomputers.
Since March 19, the company's stock has plunged from $28.125 a share to close Monday at $6.875 a share, off 62.5 cents. Oracle announced its layoffs and reorganization three hours after the close of the day's stock market trading.
Last week, Oracle said it would report a loss of about 20 cents a share for the first quarter ended Aug. 31. The company also reduced its revenue growth estimate for the current fiscal year to 25 percent, compared with 66 percent last year.
As part of its reorganization, Oracle said Chief Financial Officer Atam Lalchandani had been replaced by Jeffrey Walker, who was promoted to executive vice president and CFO.
Domestic field operations were consolidated under the leadership of Michael Fields, president of Oracle USA, and the number of sales managers were reduced, Oracle said.
Until this year, Oracle charted a blazing path to the top ranks of the computer software industry. In the year ended May 31, the company reported revenue of $971 million, up from $584 million in the prior year.
Net income for the year rose 41 percent to $117.4 million, or 86 cents a share, from $81.8 million, or 61 cents a share, in the prior year.
