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Oracle to trim up to 2 percent of work force

The software maker says it will eliminate 866 jobs through normal attrition and regular business performance assessments.

Oracle will reduce its worldwide staff between 1 percent and 2 percent in the wake of spending cuts, a company spokeswoman said.

The software maker plans to eliminate 866 jobs through normal attrition and regular business performance assessments, Oracle spokeswoman Stacey Torman said. Oracle, based in Redwood Shores, Calif., has approximately 43,300 workers.

Shares were up 25 cents to $15.68 in afternoon trading.

Oracle told analysts last week that it planned to reduce staff, said Melissa Eisenstat, an analyst at CIBC.

"They've already said they were going to do it, so it wouldn't be a surprise" to Wall Street, she said. "Once a company announces layoffs, the worst thing you can do is delay. Then you've got everyone wandering the hall saying, 'Maybe me.'"

Last week, Oracle matched analysts' reduced expectations when it posted a reported third-quarter net income of $583 million, or 10 cents per share.

The company cautioned analysts to reduce their fourth-quarter estimates, saying that it could not see into the future with any degree of accuracy.

CEO Larry Ellison said at the time that the company would try to cut costs.

"There's no organization that isn't being asked to do more with less," Ellison said. "With the sole exception of R&D, Oracle should be reducing head count in virtually every area."

Reuters contributed to this report.