Oracle's Health Unit Faces Major Downsizing Post-Cerner Acquisition Amid Industry Trends
Portfolio Pulse from Anusuya Lahiri
Oracle Corp has downsized its health unit, including Cerner, which it acquired for $28.3 billion in December 2022, by laying off hundreds of employees and cutting back open positions. The move follows Cerner's challenged work with the U.S. Department of Veterans Affairs. Oracle's Q4 revenue increased 17% YoY to $13.8 billion, beating analyst estimates.
June 16, 2023 | 12:09 pm
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Oracle downsized its health unit, including Cerner, leading to layoffs and cutbacks. Despite this, the company reported a 17% YoY increase in Q4 revenue, beating analyst estimates.
Oracle's downsizing of its health unit, including Cerner, may have negative implications for the company's healthcare business. However, the company's strong Q4 earnings report, which beat analyst estimates, suggests that the overall impact on the stock price will likely be neutral in the short term.
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IMPORTANCE 75
RELEVANCE 100