Oracle Extends Losses as DoD Moves to Cancel HR Tech Contract

Oracle shares extend losses to as much as 4.5% after the Department of Defense said it will terminate a contract for human resources software as part of ongoing cost-cutting plans.

• Current value of Pentagon contract not known
  • $92 million estimated annual cost to maintain and develop HR system
  • Program and associated contracts are more than $280 million over budget and six years behind schedule, Secretary of Defense Pete Hegseth wrote
  • DoD will cancel $580 million of contracts, grants and programs
• Contract termination a “signal to the sector,” a team of KeyBanc analysts led by Jackson Ader write
  • Efficiency plans could ...