PeopleSoft India Head Resigns; Confusion Prevails
‘When giants fight weeds get uprooted’ - this old adage has found new meaning for thousands of PeopleSoft employees who are expected to receive the much dreaded ‘pink slip’ by new owners- Oracle, facing the brunt of software history’s most brutal takeover.
The bloody coup has realized the fears of many PeopleSoft execs who saw the wave coming ever since Oracle’s interest in buying out PeopleSoft first became public. Oracle plans to reduce the size of its combined workforce to 50,000, a reduction of approximately 5,000. The deal was officially completed on January 7 2005, after an overwhelming majority (97%) of Peoplesoft shareholders tendered their stock to an offer from Oracle.
After repeated futile attempts to contact Thiru Vengadam, country manager, PeopleSoft India, it was learnt that he had already put in his papers.
A senior management official from PeopleSoft, who did not wish to be named, said, “There is utter confusion at the moment about our plight in this company. I am here today but cannot say what’s going to happen tomorrow. But probably in another ten days things would be pretty clear (A clear stay or go dictum would be issued).”
On a brighter note, the official also informed that Oracle is not going to leave the prospective layoffs in lurch. He added, “Oracle officials are briefing employees about the compensation details that would follow.”
Two things have emerged clear from this acquisition; one is product consolidation, on which, this week itself Oracle will be announcing the launch of a combined application, probably integrating the best features of both the brands. The second, and seemingly most talked about is the employee consolidation, which Oracle is pursuing aggressively with the January 14 official announcement, which will witness massive lay offs.
According to a press release posted on the official Oracle website, there are plans to retain over 90% of PeopleSoft product development and product support staff so that the development and deployment of PeopleSoft version 8.9, and the next upgrade to PeopleSoft products, version 9.0 is carried out smoothly.
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