Oracle has reportedly laid off several hundred employees within its health unit, rescinded job offers, and reduced open positions, according to Insider sources.
The affected division at Oracle encompasses the electronic medical records company, Cerner, which was acquired by Oracle for a record-breaking USD 28.3 billion in December of the previous year.
Reports indicate that the layoffs were primarily prompted by challenges faced by Cerner in its work with the US Department of Veterans Affairs (VA). Cerner was hired by the VA to replace its in-house medical records system with Cerner’s technology.
The specific issues and obstacles encountered during the implementation of Cerner’s technology within the VA’s infrastructure have led to these workforce reductions. The layoffs are a consequence of the project’s complications, which have ultimately hindered Cerner’s progress in delivering its medical records solution effectively.
As part of the layoff process, the affected employees will be provided with severance pay. The severance package includes four weeks’ worth of pay, with an additional week added for each year of service. Additionally, employees will receive a payout for their accumulated vacation days.