Oracle Corp said it will book restructuring charges of $725m to $800m following its $5.85bn acquisition of Siebel Systems.
Restructuring of the Siebel operation is expected to cost $625m to $675m. The other $100m to $125m of costs relate to Oracle operations that existed before the acquisition, mostly severance costs.
Of the Siebel-specific charges, $540m to $565m relate to real-estate costs, with Siebel severance costs coming in at $60m to $85m. Of the 2,000 proposed job cuts, only half will come from the Siebel side. Oracle split job losses in a similar way following its PeopleSoft and JD Edwards acquisition.