Oracle's (ORCL) contract with the US Department of Defense, supported by Leidos (LDOS), will be terminated as part of the Trump administration's cost-cutting efforts, Bloomberg reported Friday, citing a memo from Defense Secretary Pete Hegseth.
Oracle in 2019 said its cloud HR software was chosen by the department to manage the Pentagon's civilian staff. The next year, Leidos said it would support the project, the report said.
In the memo, Hegseth said the program and other associated contracts are six years delayed and more than $280 million over budget, according to the report.
The department has 60 days to come up with a new plan for streamlining HR technology operations, Bloomberg said.
Oracle, Leidos and the Pentagon did not immediately reply to a request for comment from MT Newswires.
Shares of Oracle and Leidos were down 2.4% and 3.6%, respectively, in recent premarket activity Friday.
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