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Investors are supposed to be so intelligent and yet they have such one dimensional thinking when it comes to their investments. Rapid expansion, RIFs, all supposed to be good, when in reality it is sometimes a sign be problems down the road. Oracle needs to grow, Oracle needs to slim down when really don't know what they are talking about. I saw this first hand with DEC and at Sun, especially at Sun, when they followed Wall St's advice. Where are they now? Granted Both companies had more than their share of foul-ups that caused their demised but I still remember Wall St putting huge pressure on Sun to expand or they pretty much said they would tank the stock. So they expanded. Insanely fast. Too fast, too much. There was no reason for it. Sun was doing fine as is and could have continued that way for a long time. So. When the .com bust hit, it hit Sun especially hard and never recovered, as what happens when you expand too fast and overextend.
A RIF might make Wall St happy in the short term, The underlying reason for doing so is far more important. Continuous cuts are a bad sign and indicative of problems that go far deeper and must be addressed before problems become unrecoverable. Now Oracle is huge and it could take a long time, but it can happen. Don't think it can't. Oracle needs an attitude shift, to both their employees and to their customers. They need to understand where they can invest and profit and invest heavily. There are probably a hundred other things they need to do, but do them they must.
Sometimes you have to ignore Wall St and do what is best for you overall company, not just wall St.
What shareholder value is there to increase if there is no one to market the wares and communicate value?
“ Many, many more layoffs are needed to increase shareholder value. “
Don’t worry CM, SC will give your wish for Christmas!
Agree with the article. Many, many more layoffs are needed to increase shareholder value.
They have absolutely no clue.
“ Yet, the layoffs are a necessary step to help slim Oracle down. “
The people, and their families being released around the holidays certainly will have the opportunity to slim down’