It has been clearly evident for some years that the cost of operating this business with fixed commission margins was out of sync and as the revenue was increasing the cost of doing the business was going up accordingly.
They hit the wall with revenue growth even adding in the Asian acquisition.
The operation stalled.
The solution was to switch from focusing on the smaller customer to directing their efforts to the larger operations.
It has not worked.
Now the strategy is to look for cost reductions.
So what is the business, it obviously relies on having people on the "pavements" selling Oracle products.
So cutting the "people"/ $9,000,000 wage expense will obviously affect revenue. Result - reducing overall numbers with the same net effect.
It still finishes up as a great place to work for those on the payroll. They will always be "safe" Similar to working for a bureaucracy.
But this is a public company with investors and supposedly trying to attract new investors.
IMO the new CEO is recycling the existing business model with more waffle.
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