The technology company has also rescinded job offers and reduced open positions.
Austin, Texas-based Oracle’s health business comprises electronics medical records company Cerner, which it acquired last year in a deal valued at $28.3bn.
Citing existing and former employees, the publication said that since the acquisition, Oracle has paused raises and promotions and axed thousands of jobs at Cerner.
The latest job cuts were largely due to Cerner’s challenged contract with the US Department of Veterans Affairs (VA), one of the sources said.
VA tasked Cerner to use its technology to replace the government department’s manual medical records.
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In 2020, Cerner commenced the work on the project, which has hit multiple roadblocks.
This April, the VA temporarily halted the deployment because of problems at the sites where Cerner’s records had already been installed.
Last month, the VA and Cerner revised their contract, enabling the government, in the VA’s opinion, to hold Cerner more responsible.
This wave of job cuts resulted from the fact that Cerner has less work relating to the government, the source claimed.
According to two of the sources, those laid off will receive severance compensation in the amount of four weeks, plus an additional week for each year of service and a payout of vacation days.
Oracle declined to comment on the development.
The software company is the latest to join other US technology companies cutting jobs in the wake of soaring interest rates and high inflation.