Oracle Slips After Staff-Cut Reports

Updated from 1:51 a.m. EST

Software company Oracle(ORCL) has fired "several hundred" of its more than 86,000 workers, according to two sources close to the situation, Reuters reports.

Oracle fired the workers on Friday, Reuters reports, trimming sales employees who advise clients on how to integrate the company's business management software and database programs into their operations.

Reuters reports the scale of the job cuts is far smaller than some investors had expected. Rumors surfaced last week that the company was preparing to lay off thousands of its employees.

Oracle declined to comment on the job cuts, according to Reuters.

The Wall Street Journal reported Oracle has cut around 500 positions in its North American sales and consulting businesses.

Earlier this week it was reported Seagate(STX) will cut 10% of its U.S. workforce, according to a filing made with the Securities and Exchange Commission, as the storage software company struggles with intense competition and slowing sales.

In December, Oracle posted revenue of $5.6 billion for the second quarter of fiscal 2009, a 5% increase from the same period the year before. That was below analysts' estimate of $5.84 billion.

For the third quarter, Oracle issued earnings guidance between 31 cents and 33 cents, below analysts' estimate of 34 cents. The company expects third-quarter revenue of $5.43 billion to $5.59 billion, short of the consensus of $5.84 billion.

Oracle shares were slipping 3.3% to $16.57 in trading Monday morning.

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