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Rumour: Oracle to close European support centres, cutting 450 jobs

Sources indicate that software firm Oracle is set to close all of its European support centres with less than 100 members of staff.

According to The Register, in practice this would mean the closure of all support centres outside the UK, the Netherlands and Romania, potentially affecting more than 450 jobs.

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The company currently has approximately 40 support centres across the continent, having already shut down any offices with less than 10 employees earlier in the year.

Oracle has repeatedly failed to meet analyst expectations regarding its financial results, with sectors such as hardware, software and cloud computing all showing limited growth.

Back in September, the firm announced revenue of $8.6 billion (£5.5 billion) for the last quarter, an increase of 2.68 per cent compared with 12 months ago. Shortly before the third quarter results were announced, the company’s CEO Larry Ellison announced that he was stepping down.

Oracle has refused to comment on the speculation surrounding the closures, but insider information suggests staff will be reassigned to other roles where possible. It is believed that the majority of the positions at threat are technical roles, including support engineers.

An anonymous source confirmed that the closures have been on the cards for some time.

"Work was slowly underway last year to move roles via natural attrition to the cheaper support centres, like Romania, Egypt, India. And I believe they've now reached the tipping point, and are going the whole hog," it said.

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The UK is unlikely to be directly affected by the closures, but some members of staff may be out of work by Q1 2015 if Oracle’s financial results do not show signs of improvement.