Oracle, Leidos Contract Targeted by US Pentagon Cost-Cutters
- In 2019, Oracle won deal for cloud HR management software
- Tech has been on alert for canceled federal contracts
Software makers that sell to the US government have been on high alert for any impact from federal cost-cutting efforts.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
The US Department of Defense said it will terminate a plan to use Oracle Corp. software to manage its civilian workforce as part of the Pentagon’s cost-cutting efforts.
“This program was intended to streamline a significant portion of the department’s legacy human resources information technology stack — an important mission we still need to achieve,” Defense Secretary Pete Hegseth said in a memo released last week. More spending on the project “would be throwing more good taxpayer money after bad,” he said.