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Oracle SA to restructure

By Iain Scott, ITWeb group consulting editor
Johannesburg, 11 Mar 2005

Oracle is planning a restructuring that will coincide with its merger with PeopleSoft, but the local arm of the group says it cannot comment on speculation that this will involve staff cuts in SA.

A source at Oracle SA says the group may also not talk about speculation that PeopleSoft SA`s MD, Mike Evans, will not join the new structure.

Evans says he cannot comment.

Oracle said in January that it would lay off 5 000 of its 55 000 employees in the wake of its merger with PeopleSoft, but no one has been willing to say how this will affect the South African operations.

The Oracle source confirms the group is planning to restructure into an application software sales division and a technology (database and server) sales division. The restructuring applies globally and not just to SA.

However, the source says the Oracle-PeopleSoft merger is likely to take place only in June and the new structure will also take effect at that time.

SA`s Competition Commission has reportedly indicated it will not oppose the merger of the two erstwhile rival groups, but the merger has been delayed until June because of international implications as well as local labour .

In the interim, PeopleSoft and Oracle are still trading as two separate entities, the source says, adding that because of , there can be no talk of retrenchment or appointments of PeopleSoft staff to new roles at Oracle.

The source says it is therefore impossible to comment on talk that Evans is not joining Oracle.

Speculation is that PeopleSoft sales director Andrew Krause has been earmarked to head the application software sales division, but Oracle will not comment on that, nor on who will lead the technology sales division.

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